Media General 1Q Revenue Climb 16%

Media General Inc. today reported first quarter 2016 net revenues of $343 million, a 16% increase from $297 million in the prior-year quarter. 

• Net local revenues, which include net local advertising revenues and retransmission consent fees, increased 11% to $230 million, compared to $207 million in the prior year.
• Net national revenues increased 1% to $50 million, compared to $49 million in the prior year.
• Net political revenues were $16 million, compared to $1 million in the prior year.
• Net digital revenues increased 25% to $38 million, compared to $30 million in the prior year.
• Operating income, excluding merger related and restructuring expenses, was $52 million, compared to $26 million in the prior year. Operating loss inclusive of these expenses was $18 million, compared to operating income of $21 million in the prior year, which is primarily due to a $60 million one-time break-up fee paid to Meredith Corp. in January 2016, to clear the way for Media General’s still pending merger with Nexstar Broadcasting Group.
• Broadcast cash flow increased 31% to $102 million, compared to $78 million in the prior year.

• Adjusted EBITDA increased 31% to $94 million, compared to $72 million in the prior year. Included in adjusted EBITDA were $5.7 million of losses from the company’s national digital businesses.

Media General CEO Vincent Sadusky said: “We commenced this historic year by delivering terrific results in the first quarter. Political advertising exceeded our expectations and helped drive 16% growth in total net revenues and 31% growth in adjusted EBITDA. Excluding political, total net revenues grew 11% versus the prior year. Additional key drivers for our performance were an increase in pay-TV subscriber fees and diligent expense management.

“Looking ahead, we remain focused on our operating initiatives and preparing for our combination with Nexstar. I am pleased with the progress we are making to unite our two strong local media companies in order to better serve viewers and advertisers.”

Read the company’s report here.