Sequential improvement in digital and broadcast advertising couldn’t offset ad losses due to the coronavirus pandemic, sending Local Media revenue to $73.1 million for the company’s fiscal fourth quarter.
Univision executives said the Hispanic media giant is seeing steady improvement during the current third quarter as it looks to recover from spring’s COVID-19 doldrums. Speaking to Wall Street analysts on the company’s second-quarter earnings call, CFO Peter Lori said advertising revenue for the third quarter was on track for a 15% year-over-year decline in the third quarter. That’s an improvement from the second quarter’s 40% plunge.
It reports a lower net loss for the second quarter of $10.4 million, or $(0.15) per share, compared to a net loss of $279.5 million, or $(4.61) per share reported in the year-ago quarter.
The increase to $578 million is driven by acquisitions, continued growth in subscription revenue and political revenue, partially offset by advertising declines as a result of COVID-19.
Michael Depp and Harry Jessell unpack the abrupt withdrawal of FCC Commissioner Michael O’Rielly’s renomination by President Trump this week and discuss the pandemic’s reckoning on broadcasters’ quarterly earnings.
The decrease to $277 million was significantly impacted by the economic downturn, reflecting the impact of the COVID-19 pandemic, with the greatest impact in April. Scripps said it saw improvements in advertising revenue from April to May and from May to June.
The decrease to $100.8 million is pegged to reduced advertising demand related to the COVID-19 pandemic, partially offset by a $3.7 million increase in political advertising revenue and a $3.5 million increase in retransmission revenues. It says that “while revenue and operating results were adversely impacted by the COVID-19 pandemic in the second quarter of 2020, both revenue and operating results improved steadily throughout the quarter.”
ViacomCBS absorbed a blow to its advertising business from COVID-19 in the second quarter, beating Wall Street forecasts for earnings but clearing the bar for total revenue.
It says the decrease to $451 million is due to the impact of the coronavirus pandemic, which it says “significantly impacted our revenues and results for the second quarter and first half of 2020. Nevertheless, despite these macroeconomic challenges, over the first half of this year, we increased our cash on hand by $167 million and repurchased $49 million of our common stock.”
Nielsen swung to a loss in the second quarter as revenue fell amid pandemic as the company continued preparation to split into separate entities. Nielsen had a net loss of $30 million, or 8 cents a share, in the second quarter, compared to net income of $123 million, or 23 cents a share, a year ago. Revenue fell 8.1% to $1.496 billion.
The New York Times’ digital revenue surpassed its print revenue for the second quarter of 2020 for the first time in history. The Times added 669,000 net new digital subscribers during the quarter, according to Wednesday morning’s earnings release from the company. Overall in the quarter, the Times brought in $185.5 million in digital subscription and ad revenue and $175.4 million in print revenue.
Distribution and political revenue push that total up 75%, while the company’s total revenue climbs 66% to $1.3 billion.
That represents a 40.9% jump from 2Q 2019, boosted by its purchase of Tribune Media. Looking ahead, CEO Core ad revenue grew 11.4% and political ad money shot up 583% to $21.6 million.
Fox Corp. Tuesday reported total sales of $2.42 billion last quarter, in line with expectations, down slightly (4%) from a year ago but off $1 billion from the previous three months as COVID-19 hit advertising.
For quarter that ended June 27, the Walt Disney Co. posted a loss of $4.84 billion, or $2.61 per share, compared to a profit of 79 cents in the prior year quarter. Revenue fell 42% to $11.78 billion, missing analyst expectations of $12.39 billion, according to FactSet.
Ford reported a $1.12 billion second-quarter net profit, pushed into the black by a $3.5 billion gain on the value of its stake in the Argo AI autonomous vehicle operation. Without the one-time gain, the company lost $1.9 billion, or a 35 cents per share. But that was far better than the $1.17 a share loss Wall Street had expected, according to FactSet.
The staggering economic fallout caused by the coronavirus pandemic was reflected in reports released Thursday from Amazon, Facebook, Apple and Google’s corporate parent, Alphabet.
Advertising revenue for NBC’s broadcast networks NBC and Telemundo dropped 28% to $959 million while its cable networks, like Bravo and USA Network, fell 27% to $679 million.
The Detroit automaker had to close its plants from March 18 to May 18 due to the coronavirus, but production didn’t resume fast enough to hold off a net loss.
Average daily user growth spiked 34% in the second quarter, the company said Thursday, the largest jump in users ever recorded by the company.
Snap’s stock price initially plunged more than 11% after hours then moderated to a smaller decline as investors digested positive user and revenue growth on Tuesday after the company reported its second-quarter earnings.
FuboTV, the streaming service acquired by Facebank on April 1, disclosed that the combined companies registered a pro-forma net loss of $48.4 million in the first quarter. In a filing with the Securities & Exchange Commission Wednesday, FuboTV alone had a loss of $36 million in the quarter and Facebank lost $4.5 million. Adjustments to earnings totaled $8 million.
Increased political revenue couldn’t offset advertising losses due to the coronavirus pandemic, sending Local Media revenue to $99.7 million for the company’s fiscal third quarter.
Despite the hemming and hawing over cord cutting, top operators added more than 1.2 million high-speed internet customers in 1Q, according to Leichtman Research Group.
Revenues at Sony’s film and TV division climbed to $9.32 billion from $8.87 billion in the previous fiscal year. Overall profit at Sony Corp. fell 36%.
As 1Q earnings come to a close, it’s clear that 2020 will no longer be a year of double-digit ad growth driven by record political spending. On the plus side, local TV has proved once more that the business is fundamentally sound and resilient. Also, Dennis Wharton has had enough.
Meredith Corp. is delaying the filing of its report for the quarter ended March 31. It told the SEC that the coronavirus pandemic resulted in “significant disruption of aspects of our business, including advertising cancellations and delays, reduced demand, loss or disruption of manufacturing and distribution capability, and quarantines and other government actions.” The quarterly report is now scheduled for this Thursday, May 14.
An unprecedented first quarter saw local TV’s ad sales go off a cliff with some broadcasters declining to give guidance for what’s ahead, but a bright spot was the double- and triple-digit ratings gains for local newscasts.
The increase to $322 million was aided by a jump in retrans revenue. When factoring in the acquisition of 23 stations last year, that local media revenue percent gain climbs to 58%.
Comscore registered a net loss of $13.2 million, or 19 cents a share, compared to a loss of $27.5 million, or 46 cents a share, a year ago.
The increase to $684 million is driven by strength in subscription and political revenues. Net income increased 17% and adjusted EBITDA rose 39%, benefiting from high-margin political revenues and recent acquisitions.
ViacomCBS reported dips in revenue and profit but its numbers beat expectations sending the stock up more than 10% in early trade. The company said revenue dipped 6% to $6.7 billion.
The increase to $515 million is due to higher retrans and political advertising money. It says the effects of the coronavirus has resulted in “reduction in demand for advertising across our television stations and digital platforms [and] a very significant reduction in demand in the market for the video production of sporting and other events by our production companies.”
Fox said revenue for its fiscal third quarter ending March 31 jumped 25% to $3.44 billion, beating estimates, as ad revenues swelled 44% on SuperBowl LIV. The company announced numbers after the closing bell Wednesday. Shares ended up more than 3% ahead of earnings.
Distribution and digital revenue push that total up 134%, while the company’s total revenue climbs 123% to $1.6 billion.
That represents a 74.2% jump from 1Q 2019, boosted by its purchase of Tribune Media. Looking ahead, CEO Perry Sook says: “While the coronavirus has presented serious challenges for the entire broadcast industry, Nexstar’s leading local broadcast platform is well positioned to withstand this environment due to several factors including continued growth of distribution revenue and what are projected to be record levels of political spending in 2020.”
The increase to $115.4 million is pegged to increases in both political advertising and retransmission consent revenues, but Graham notes that company-wide it was affected by the COVID-19 pandemic and warned that the virus is expected to “negatively impact advertising revenue and the operating results at the television broadcasting division for the remainder of 2020.”