Graham Holdings Co. reported second quarter 2020 earnings that included revenue from its television broadcasting division, Graham Media Group, of $100.8 million, a decrease of 13.6% from $116.6 million in the same quarter of 2019.
The revenue decline is due 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.
In the second quarter of 2020 and 2019, the television broadcasting division recorded $1.1 million and $7.8 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 second quarter of 2020 decreased 47% to $23.6 million, from $44.5 million in the same period of 2019, due to revenue declines, higher network fees and a reduction in property, plant and equipment gains.
The company added 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.”
The company as a whole, Graham Holdings, had 2Q revenue of $652.9 million, down 11% from $737.6 million in 2Q 2019, largely due to the impact of the COVID-19 pandemic.
Revenues declined at education, television broadcasting, manufacturing, SocialCode and other businesses, partially offset by an increase at healthcare.
The company reported operating income of $5.9 million for the second quarter of 2020, compared to $58.0 million for the second quarter of 2019. The operating income decline is driven by lower earnings in education, television broadcasting, manufacturing, SocialCode and other businesses, partially offset by an improvement at healthcare.
Graham said the coronavirus pandemic and measures taken to prevent its spread, such as travel restrictions, shelter in place orders and mandatory closures, “significantly impacted the company’s second quarter 2020 results, largely from reduced demand for the company’s products and services.
“This significant adverse impact is expected to continue in the second half of 2020, and through the end of 2020. The company’s management is taking a variety of measures to reduce costs and capital expenditures.”
It also said the postponement of the 2020 Summer Olympics and overall reduced advertising demand due to the COVID-19 pandemic are expected to negatively impact advertising revenue and the operating results at the television broadcasting division for the remainder of 2020.
Read the company’s report here.
16 May 2024
23 May 2024
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