Overall revenue was off just 1.3% with increases in retrans and digital revenues nearly offsetting the sharp 86% decrease in political advertising and the weak core spot returns. Retrans was up 38%; digital, 17%.
QUARTERLY REPORT
Media General 2Q Spot: Total, -7.7%; Core, Flat
Media General Inc., soon to merge with Young Broadcasting, today reported that spot revenue in the second quarter was $71.8 million, down 7.7% compared to the same quarter of 2012 because of a $6.4 million (86%) decline in political spending. Such shortfalls in political spending, the company said, are expected in odd-numbered years.
Core spot revenue, which excludes political, was up less than 1% to $70.8 million, with local core dropping nearly 1.9% and national rising 5.6%. Local accounted for 64% of the spot revenue.
Overall, counting digital and retransmission consent fees, station revenue dropped 1.3% to $82 million. Cable and satellite retransmission revenue increased 38%, and digital revenues grew 17%.
The company posted a net loss in the second quarter of $16 million, or 59 cents per share, compared with a net loss of $146 million, or $6.48 per share, in the prior year, which included a loss of $132 million related to the divestiture of discontinued operations, mostly newspapers.
The cash flow margin for the quarter was 34% compared to 37% in the second quarter of 2012.
George L. Mahoney, president and chief executive officer of Media General, said: “Our stations are doing a good job this year replacing last year’s robust political revenues with new revenue initiatives and business development programs. Additionally, our largest category, automotive advertising, grew 5.5% in the second quarter.
BRAND CONNECTIONS
“Station revenues also reflected higher retransmission revenue this year and growth in digital revenues. Station expenses increased 4.6%, due to additional network affiliation fees and expenses for revenue initiatives. We were especially pleased to see our stations increase broadcast cash flow to 34%, compared to the last odd-numbered year 2011, a key initiative for us. Core corporate expense in the second quarter decreased 41% from last year, reflecting our major corporate restructuring following the sale of our newspapers,” Mahoney said.
Mahoney said the company’s previously announced merger with Young is progressing smoothly. “We expect to complete the transaction in the late third or early fourth quarter of this year.”
Read the company’s report here.
Comments (3)
Olga Alvarez says:
August 8, 2013 at 9:50 am
So without digital and retrans, they are probably under the line…… seems like most every other company has reported core increases. Shocking what happens when you let all of your stations “die on the vine” with no resources and poor leadership…… It’s a shame for all of the good people that work there.
Wagner Pereira says:
August 8, 2013 at 7:02 pm
Yes, WFLA-TV in Tampa, their largest TV Market had their Local News destroyed. Will be a very expensive rebuild – with no help from NBC Network programming.
Keith ONeal says:
August 8, 2013 at 11:11 pm
Wonder how WRBL in Columbus, Georgia is doing.