Media General 2Q Revenue Climbs 13%

Media General Inc. today reported its second quarter 2016 net revenues increased 13% to $363 million, compared to $321 million in the second quarter of the prior year. Excluding political revenue, net revenues increased 11% compared to the second quarter of the prior year.

Broken out:

• Net local revenues, which include net local advertising revenues and retransmission consent fees, increased 13% to $248 million, compared to $220 million in the second quarter of the prior year.

• Net national revenues increased 1% to $54 million, compared to $53 million in the second quarter of the prior year.

• Net political revenues were $10 million, compared to $3 million in the second quarter of the prior year.

• Net digital revenues increased 18% to $43 million, compared to $36 million in the second quarter of the prior year.

• Operating expenses increased 7% to $303 million, compared to $284 million in the second quarter of the prior year.

• Operating income was $60 million, compared to $37 million in the second quarter of the prior year.

• Broadcast cash flow increased 25% to $120 million, compared to $96 million in the second quarter of the prior year.

• Adjusted EBITDA increased 23% to $111 million, compared to $91 million in the second quarter of the prior year. Included in Adjusted EBITDA were $2.6 million of losses from the Company’s national digital businesses.

• Earnings per diluted share was $0.14, compared to earnings per diluted share of $0.01 in the second quarter of the prior year.

Media General CEO Vincent Sadusky said: “We delivered strong results, with total net revenues increasing 13% and Adjusted EBITDA growing 23%, compared to the prior year. Key drivers for our performance were political advertising, an increase in pay-TV subscriber fees and expense management, including further realization of synergies from the LIN Media merger. In addition, our digital restructuring initiatives resulted in an 18% revenue increase for the quarter, and in June, we recorded the highest digital revenue month in our company’s history. Excluding political advertising, total net revenues increased 11%, compared to the prior year.”

Sadusky added, “Looking ahead, we feel great about the second half of the year, as our strong news stations benefit from national and local political races. Additionally, the highly viewed Summer Olympics will air on our 13 NBC stations. This is an exciting time as we work towards the consummation of our combination with Nexstar.”

Read the company’s report here.