Media General 3Q Revenue Climbs 17%

Media General Inc. today reported that its third quarter 2016 net revenues increased 17% to $377 million, compared to $322 million in the third quarter of the prior year. Excluding political revenue, net revenues increased 11% compared to the third quarter of the prior year.

Broken out:

• Net local revenues, which include net local advertising revenues and retransmission consent fees, increased 18% to $249 million, compared to $212 million in the third quarter of the prior year.

• Net national revenues increased 4% to $55 million, compared to $52 million in the third quarter of the prior year.

• Net political revenues were $26 million, compared to $5 million in the third quarter of the prior year.

• Net digital revenues decreased 9% to $40 million, compared to $44 million in the third quarter of the prior year.

• Operating expenses increased 15% to $406 million, compared to $352 million in the third quarter of the prior year.

• Absent the impairment charges, merger-related expenses, restructuring costs and higher network fees, total operating costs decreased 4%, compared to the third quarter of the prior year.

• Corporate and other expenses were $9 million, compared to $13 million in the third quarter of the prior year.

• Broadcast cash flow increased 50% to $135 million, compared to $90 million in the third quarter of the prior year.

• Adjusted EBITDA increased 58% to $129 million, compared to $81 million in the third quarter of the prior year. Included in adjusted EBITDA were $940 thousand of operating losses from the company’s national digital businesses.

Media General CEO Vincent Sadusky commented: “We delivered record revenues and adjusted EBITDA during the quarter. Core television advertising grew 3%, primarily due to robust Olympic advertising. Political advertising and pay-TV subscriber fees were key drivers of our 17% increase in total net revenues.

“Revenue growth, coupled with expense management, helped us achieve a 50% increase in broadcast cash flow and a 58% increase in adjusted EBITDA. Looking ahead, we are eager and prepared to complete our transaction with Nexstar, which will result in a stronger local media company that is better able to serve its local communities.”

Read the company’s report here.