Graham Media Group 4Q, Full-Year Rev Rises

Graham Holdings Co. today reported fourth quarter and full-year financial results that included a 20% increase in 4Q revenue at its television broadcasting division Graham Media Group to $102.4 million, from $85.7 million in 2013; operating income for the quarter was up 24% to $54.4 million, from $44 million in the same period of 2013.

The company said the increase in revenue and operating income is due to a $15.4 million increase in political advertising revenue and $4.6 million in increased retransmission revenues.

For all of 2014, revenue for the television broadcasting division increased 18% to $363.8 million, from $308.3 million in 2013; operating income for 2014 was up 29% to $187.8 million, from $145.2 million in 2013.

The increase in revenue and operating income is due to a $31.8 million increase in political advertising revenue, $9.5 million in incremental winter Olympics-related advertising revenue at the company’s NBC affiliates and $18.6 million in increased retransmission revenues.

(The broadcasting results exclude WPLG Miami, which has been reclassified to discontinued operations, since its sale to Berkshire Hathaway Inc. was completed on June 30, 2014.)

Cable division revenue for 2014 declined 1% to $798.1 million, from $807.3 million in 2013 due to 4% fewer customers and 8% fewer primary service units (PSUs); revenue totaled $197.7 million for the fourth quarter of 2014, a 1% decline from $200.2 million for the fourth quarter of 2013.

Operating expenses in 2014 declined 3%, from $637.6 million to $619.4 million in 2014; operating expenses declined 3% in the fourth quarter of 2014, from $151.5 million to $147.0 million. The expense declines are due to fewer customers and significantly reduced programming costs, the company said.

Cable division operating income grew 5% to $178.7 million, from $169.7 million in 2013; operating income increased 4% from $48.7 million in the fourth quarter of 2013 to $50.7 million in the fourth quarter of 2014.For the company as a whole, revenue was $898.9 million, up 5% from $856.1 million in the third quarter of 2013.

The company reported operating income of $81.3 million in the third quarter of 2014, compared to $78.9 million in the third quarter of 2013.

For the fourth quarter, the company as a whole had revenue of $925.3 million, up 7% from $867.2 million in 2013. Operating income was $146.2 million in the fourth quarter of 2014, compared to $97.4 million in 2013. Operating results improved at all reporting segments.

Full-year 2014 revenue was $3.5 billion, up 4% from $3.4 billion in 2013. Operating income for 2014 increased to $407.9 million, from $319.2 million in 2013.