FISHER REVENUE UP 9% IN 2Q, FIRST HALF
Fisher Communications, the Seattle-based operator of 12 TV stations and 27 radio stations, boosted revenue 9% in the second quarter and first half of 2006 compared with the same periods last year, it reported today.
“These increases in revenue occurred in both local and national broadcasting revenue categories,” said Colleen Brown, president and CEO of Fisher Communications, in a statement.
The results do not include those of Fisher’s discontinued operations—24 small-market radio stations in Montana and eastern Washington that it is selling for $33.3 million.
Revenue from continuing operations for the second quarter grew $3.3 million or 9% to $40.2 million, while revenue for the first half rose $6.1 million or 9.3% to $71.3 million. Growth is against the same periods last year.
“Spot revenue is up primarily due to better inventory management and more agressive sales policies,” Acting CFO Jodi Colligan told securities analysts in a conference call this afternoon
According to Colligan, in the first half of 2006, 69% of the company’s revenue came from its 12 network-affliliated TV stations, 25% from its remaining three Seattle radio stations and 6% from Fisher Plaza, an office complex near downtown Seattle.
Colligan also noted that the company’s two ABC-affiliated TV stations—KOMO Seattle and KATU Portland, Ore.—accounted for approximately 51% of the company’s total year-to-date 2006 revenue from continuing operations.
Income from continuing operations was $1.8 million in the second quarter of 2006 compared to a loss of $1.5 million in the quarter a year earlier.
In the conference call with analysts, Brown indicated that Fisher would be pursuing a duopoly strategy, acquiring second stations in its markets so that it could take advantage of the operating efficiencies.
As part of that strategy, Fisher struck a deal in June to acquire KWOG from African American Broadcasting for $16 million. Fisher intends to operate the station as a Univision affiliate in tandem with its flagship KOMO.
In July, Fisher announced that it entered into a local marketing agreement to manage four low-power TV stations affiliated with Univision inYakima-Pasco-Richland-Kennewick, Wash., where Fisher already owns two CBS affiliated stations, KIMA and KEPR. The LMA contains an option to buy the LPTVs that expires on June 30, 2007.