Tribune 1Q TV-Entertainment Rev Dips 4.4%

Tribune Media today reported first quarter earnings results that included Television and Entertainment Segment revenue of $436 million, down 4.4% from $455.9 million in the first quarter of 2016.

The numbers come just two days after the announcement that Tribune is being bought by Sinclair Broadcast Group for $43.50 per share, for an aggregate purchase price of approximately $3.9 billion, plus the assumption of approximately $2.7 billion in net debt.

The company said the Television and Entertainment Segment revenue decrease was driven by a $17.7 million drop in net core advertising revenue and a $13.7 million decrease in net political ad revenue, and was partially offset by an increase in retransmission revenues of $10.7 million, or 13%, and an increase in carriage fee revenues of $2.6 million, or 8%.

Television and Entertainment operating profit was $20 million for the first quarter of 2017 compared to $58.6 million in the first quarter of 2016, a decrease of $38.6 million, or 66%. The decrease was primarily due to lower revenues of $19.8 million and increased programming expense of $17.1 million, primarily due to an increase in the number of original hours aired on WGN America, and higher network affiliate fees. 

Television and Entertainment Adjusted EBITDA was $75.2 million for the first quarter of 2017 compared to $116 million in the first quarter of 2016, a decrease of $40.8 million, or 35%, primarily due to lower advertising revenues as well as increased programming expenses, as described above.

“We are pleased and excited with Monday’s announcement that Tribune Media has agreed to be acquired by Sinclair Broadcast Group, marking the culmination of a thorough strategic review which focused on optimizing shareholder value,” said Peter Kern, Tribune Media’s interim CEO. “As for the first quarter, our financial results were in line with our expectations, with anticipated reductions in political advertising and real estate revenues, and increased programming expenses due to airing more hours of originals at WGN America.

“We expect the next three quarters will be strong as we cycle past core advertising displacement, realize significant acceleration of retransmission revenues, and continue disciplined expense management across the company. We are reaffirming our full year financial guidance for 2017 and are intensely focused on completing our transaction with Sinclair.”

The company as a whole reported consolidated operating revenues decreased 6% to $439.9 million; excluding political advertising and real estate revenues, consolidated operating revenues decreased 1%.

Consolidated operating loss was $15.2 million, compared to operating profit of $30 million for the first quarter of 2016.

Read the company’s report here.