Graham 3Q TV Revenue Drops 11%
Graham Holdings Co. has reported third quarter earnings that included revenue from its television broadcasting division, Graham Media Group, of $115.2 million, a decrease of 11% from $130 million in the same quarter of 2018.
That decrease was tagged to a $19.9 million decrease in political advertising revenue, slightly offset by a $3.1 million increase in retransmission revenues.
In the third quarter of 2019 and 2018, the television broadcasting division recorded $1.1 million and $1.0 million, respectively, in reductions to operating expenses related to property, plant and equipment gains due to new equipment received at no cost in connection with the spectrum repacking mandate of the FCC.
Operating income for the third quarter of 2019 decreased 34% to $36.8 million, from $55.5 million in the same period of 2018, due to lower revenues and higher network fees.
The company as a whole, Graham Holdings, had 3Q revenue of $738.8 million, up 9% from $674.8 million in the third quarter of 2018, largely due to the acquisition of two automotive dealerships in January 2019 and the acquisition of Clyde’s Restaurant Group in July 2019.
Revenues grew at healthcare and SocialCode, partially offset by declines at the television broadcasting and manufacturing businesses.
The company reported operating income of $16.3 million for the third quarter of 2019, compared to $60.7 million for the third quarter of 2018. The operating income decline is driven by lower earnings in education, television broadcasting, SocialCode and other businesses, partially offset by improvements in manufacturing and healthcare results.
Read the company’s report here.