Journal’s 4Q, 2012 Rev Get Political Boost

Journal Communications today announced that in the fourth quarter of 2012 its television station revenue increased 76.2% to $55.8 million or 69.6% excluding the extra week in the quarter compared to the year earlier.

Television political revenue was $19.9 million compared to $700,000. On a same-station basis excluding political and the extra week, total revenue was flat, local revenue decreased 3.1%, primarily due to the crowding-out effect of political advertising, and national revenue increased 6.6%. Retransmission revenue was $3 million compared to $2.4 million.

In the fourth quarter, operating expenses increased 34.9%. On a same-station basis excluding special items and the extra week, expenses increased 18.4% driven by higher sales commissions and increased employee costs. Included in special items is a $700,000 non-cash impairment charge for broadcast licenses in 2012. Operating earnings were $19.7 million.

For the full year, revenue increased 37.7% to $159.4 million or 35.9% excluding the extra week. Television political revenue was $34.8 million compared to $4.1 million. On a same-station basis excluding political and the extra week, total revenue increased 4.7%, local revenue decreased 1.5%, due to the crowding-out effect of political revenue, and national revenue increased 16.9%. Retransmission revenue was $10.6 million compared to $8.3 million.

For the full year, operating expenses increased 17.4%. On a same-station basis excluding special items and the extra week, expenses increased 12.4% driven by higher sales commissions and increased employee costs. Included in special items is a $0.7 million non-cash impairment charge for broadcast licenses in 2012. Operating earnings were $42.3 million.

For the company as a whole, in the fourth quarter, revenue of $124.5 million increased 31.0% or 24.7% excluding the extra week. Operating earnings of $27.2 million increased 91.9% driven by higher political revenue.

For the full year, revenue from continuing operations of $400.0 million increased 12.1%. Excluding the extra week, revenue increased 10.4%. Operating earnings of $60.0 million increased 50.8% driven by higher political revenue.

“Journal Communications posted excellent results in the fourth quarter with consolidated revenue of $124.5 million, up 31%, led by record political spending in the Broadcast group” said Steven J. Smith, Journal’s chairman-CEO. “In addition to the record political advertising revenue in 2012, we saw core advertising growth in television and radio and moderating revenue declines in publishing. For the full year, consolidated revenue was $400 million, up 12% over 2011.”

Read the company’s report here.