Meredith Fiscal 2Q Local Media Rev Down 10%

Meredith Corp.’s Local Media Group — which consists of 17 television stations reaching 11% of U.S. TV households — generated revenue of $140 million in its second quarter 2016, a decrease of 10.9% from the previous 2Q.

Looking more closely at the quarter’s financial performance compared to a year earlier:

• Non-political advertising revenues grew 9% to $104 million. Results were led by growth in the automotive, professional services and retail categories.

• As expected in an off-election year, Meredith recorded $29 million less of high-margin, incremental political advertising revenues in the second quarter of fiscal 2016 than in the prior-year period.

• 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.

• Digital advertising revenues grew 20% as growth strategies, including Meredith bringing its programmatic sales efforts in-house, began to be realized. Handling its own programmatic sales allows greater customization and Meredith retains all the revenue.

• Operating profit fell 27.3% to $40 million.

“We’re very proud of our focus on the local viewer, and very pleased that our advertising clients continue to recognize the unique ability that television has to engage and inspire consumers,” said Meredith Local Media Group President Paul Karpowicz. “In particular, we are very pleased to see the strong growth in the Atlanta, Hartford and Kansas City markets.” 

For the company as a whole, Meredith reported fiscal 2Q revenue of $406.4 million, up 1.8% from the year-earlier quarter. Net earnings were $32.5 million compared to $39.6 million in the year-ago quarter.

Read the company’s report here.