Meredith Local Media Revenue Down 6.4%

Meredith Corp.’s Local Media Group — which consists of television stations and a video content creation unit that produces national broadcast and custom programming — generated fiscal 2014 second quarter revenue of $104 million, a drop of 6.4% compared to $111 million in the prior-year period.

Meredith recorded $25 million less of political advertising revenues in the second quarter of fiscal 2014 than in the prior-year period, as expected in an off-election year. That drop, the company said, “was nearly offset” by “growth in retransmission revenues and non-political advertising revenues.”

Fiscal 2014 second quarter Local Media Group operating profit was $35 million, compared to $45 million in the prior-year period. Fiscal 2014 second quarter operating profit included $1.6 million of transaction expenses. EBITDA margin was 40%.

“We were pleased to generate record non-political performance in the first half of fiscal 2014,” said Local Media Group President Paul Karpowicz. “We continue to consistently deliver great programming for our viewers and outstanding results at retail for our advertising clients.”

On Dec. 23, 2013, Meredith announced an expansion of its television portfolio by entering into definitive agreements to purchase stations in Phoenix and in St. Louis. Included in the transactions are:

• KTVK, an independent station in Phoenix (DMA 12)
• KASW, the CW affiliate in Phoenix; and
• KMOV, the CBS affiliate in St. Louis (DMA 21)

“These stations are terrific additions to our group,” Karpowicz said.  “The markets are growing and they are located in states with significant political advertising.”

The company as a whole reported total revenues of $354 million, compared to $361 million in the year-earlier quarter.

“We continued our strong performance into the second quarter of fiscal 2014,” said Meredith Chairman-CEO Stephen M. Lacy. “Our National Media Group delivered revenue and profit growth in the quarter, while our Local Media Group achieved record revenue and profit performance for a non-political fiscal second quarter and first half.

“Importantly, we continue to execute strategic initiatives to deliver increased cash flow and returns to our shareholders over time, most recently through the announced acquisition of great television assets in attractive markets,” Lacy continued. 

Read the company’s report here.