Growth to $126 million was driven primarily by the addition of WALA Mobile, Ala.-Pensacola, Fla., and WGGB Springfield, Mass., and higher retransmission consent fees. Non-political advertising revenues increased 12%.
Meredith Fiscal 1Q Local Media Rev Up 1%
Meredith Corp.’s Local Media Group — which consists of 17 television stations reaching 11% of U.S. TV households — generated revenue of $126 million in its fiscal first quarter 2016, an increase of 1% from the previous 1Q.
Looking more closely at the quarter’s financial performance compared to a year earlier:
- Non-political advertising revenues grew 12% to $89 million. Results were led by the acquired stations in Mobile and Springfield, along with growth in the professional services, retail and restaurants categories.
- Political advertising revenues were $11 million less than in the year-earlier quarter.
- Other revenues and operating expenses increased, due primarily to growth in retransmission revenues from cable and satellite television operators and higher programming fees paid to affiliated networks, along with increases from recent acquisitions.
- Operating profit fell 19.5% to $29 million.
“We were pleased to deliver solid growth in non-political advertising revenues, which speaks to the fundamental strength of our television broadcasting business,” said Meredith Local Media Group President Paul Karpowicz. “We continue to focus on producing local news that engages our viewers, monetizing the strength of our audiences and expanding our digital business.”
For the company as a whole, Meredith reported fiscal 1Q revenue of $384.7 million, up 3.6% to $371.2 million. Net earnings were $11 million compared to $29.4 million in the year-ago quarter.
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