Graham Holdings 4Q TV Revenue Down 11%

Graham Holdings Co. today reported earnings results that included revenue for the television broadcasting division in the fourth quarter of 2013 of $103.0 million, a decrease of 11% from $116.2 million in the same period in 2012. For the full year, revenue decreased 6% to $374.6 million in 2013, from $399.7 million in 2012.

Television broadcasting division operating income for 2013 decreased 11% to $171.3 million, from $191.6 million in 2012. For the fourth quarter of 2013, operating income decreased 17% to $51.9 million, from $62.8 million in 2012.

The company said the decline in revenue and operating income for 2013 and the fourth quarter of 2013 is due to a $49.7 million and $25.6 million decrease in political advertising revenue, respectively, and $10.8 million in incremental summer Olympics-related advertising at the Company’s NBC affiliates included in the third quarter of 2012.

The decline in revenue and operating income was partially offset by increased retransmission revenues.

Cable division revenue for 2013 increased 3% to $807.3 million, from $787.1 million in 2012; revenue totaled $200.2 million for the fourth quarter of 2013, a 1% decline from $201.7 million for the fourth quarter of 2012.

The revenue increase in 2013 is due to recent rate increases for a substantial portion of subscribers, growth in commercial sales and a reduction in promotional discounts. The increase was offset by a decline in video subscribers, as the cable division focuses its efforts on churn reduction and retention of its high-value subscribers.

For the company as a whole, revenue for 2013 was $3,487.9 million, up 1% from $3,455.6 million in 2012. Revenues increased at the cable division and in other businesses, offset by declines at the television broadcasting and education divisions.

Operating income for 2013 increased to $345.6 million, from $179.2 million in 2012. Operating results improved at the education and cable divisions, offset by a decline at the television broadcasting division.

For the fourth quarter of 2013, revenue was $888.9 million, down 1% from $895.9 million in 2012. Revenues declined at the television broadcasting and cable divisions, offset by an increase at the education division. The company reported operating income of $105.5 million in the fourth quarter of 2013, compared to an operating loss of $22.9 million in 2012. Operating results improved at the education and cable divisions, offset by a decline at the television broadcasting division.

Read the company’s report here.