Graham Media Group 1Q Rev Dips 2%

Graham Holdings Co. today reported first quarter financial results that included a 2% revenue decrease at its television broadcasting division Graham Media Group to $83.6 million, from $85.7 million in the same period of 2014; operating income for the first quarter of 2015 was down 13% to $38.6 million, from $44.4 million in the same period of 2014.

The company said the decrease in revenue is due to a $1.7 million decrease in political advertising revenue compared to the first quarter of 2014 and $9.5 million in incremental winter Olympics-related advertising revenue at Graham’s NBC affiliates booked in the prior year, offset by revenues from the Super Bowl at the company’s NBC affiliates in February 2015 and a $2.3 million in increased retransmission revenues.

The decline in operating income is due to the revenue decline and an increase in spending on digital initiatives.

Graham Holdings cable division revenue declined 3% in the first quarter of 2015 to $198.7 million, from $203.9 million for the first quarter of 2014, due to 5% fewer customers and 9% fewer primary service units.

Cable operating expenses in the first quarter declined 2%, from $162.8 million to $159.6 million, due to fewer customers and reduced programming costs, offset by an increase in depreciation expense.

Cable division operating income declined 5% in the first quarter of 2015 to $39.1 million, from $41.2 million in the first quarter of 2014.

For the first quarter, the company as a whole had revenue of $846.1 million, up 1% from $836.5 million in the first quarter of 2014. The company reported operating income of $46.6 million for the first quarter of 2015, compared to $78.9 million for the first quarter of 2014.

Operating results were down at the education, television broadcasting and cable divisions, offset by improvement in other businesses.

Read the company’s report here.