Graham 4Q TV Revenue Down 19%

Graham Holdings Co. reported fourth quarter 2019 earnings that included revenue from its television broadcasting division, Graham Media Group, of $123.5 million, a decrease of 19% from $152.6 million in the same quarter of 2018.

That decrease was tagged to a $35.1 million decrease in political advertising revenue, partially offset by $0.8 million in higher retransmission revenues.

In the fourth quarters of 2019 and 2018, the television broadcasting division recorded $1.1 million and $1.8 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 fourth quarter of 2019 decreased 51% to $35.8 million, from $73.4 million in the same period of 2018, due to lower revenues and higher network fees, and the intangible asset impairment charge.

The company as a whole, Graham Holdings, had 4Q revenue of $763.5 million, up 11% from $689.1 million in 4Q 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 increased at the education and healthcare divisions and other businesses, partially offset by declines at the television broadcasting and manufacturing divisions.

The company reported operating income of $30.3 million in the fourth quarter of 2019, compared to $75.6 million in 2018. Operating results declined at most of the company’s divisions, with a large portion of the decline at television broadcasting due to significant political revenue in the fourth quarter of 2018; this was partially offset by improvements at healthcare and SocialCode.

Read the company’s report here.