Tribune 1Q TV-Entertainment Rev Up 11%

Tribune Media today reported first quarter 2016 results that included Television and Entertainment segment revenue of $454.7 million compared to $410.3 million in the first quarter of 2015, an increase of $44.4 million, or 11%.

The company said the increase was driven by higher net political advertising revenue of $13.3 million; a 21% increase in retransmission consent revenue to $83.5 million; a 44% increase in carriage fee revenue to $31 million; and a 2.2% increase in core advertising revenues to $291.8 million.

Adjusted EBITDA for the first quarter of 2016 was $116.0 million compared to $135.0 million in the first quarter of 2015. Tribune said that adjusted EBITDA  was impacted largely by a planned increase of $25 million in programming expenses and $16 million of promotion expenses, primarily associated with premiering the original series Outsiders and Underground on WGN America.

Digital and Data segment revenues were $53.3 million compared to $50.2 million in the first quarter of 2015, an increase of $3.1 million, or 6.1%. The increase was primarily due to the favorable impact of the acquisitions of Infostrada Sports, SportsDirect, Covers and Enswers, all of which were consummated in the second quarter of 2015, and higher video revenues at the legacy business, partially offset by lower music revenues primarily due to lower revenues recognized from auto contracts.

“We had yet another quarter of strong top-line growth,” said Peter Liguori, Tribune Media’s president and chief executive officer. “Our broadcast business posted solid results, highlighted by continued growth in core advertising, retransmission consent and carriage fee revenues, as well as very strong spending on political advertising.

“At our cable network, WGN America, the undeniable success of this quarter’s two new original series, Outsiders and Underground, demonstrates that our plan to reinvent the network is working better than we could have imagined.

“We are pleased with our first quarter results and as our reaffirmed full year guidance indicates, we expect significant Adjusted EBITDA growth for the remainder of 2016,” he added.

The company as a whole reported consolidated operating revenue of $520.5 million compared to $472.7 million in the first quarter of 2015, representing an increase of $47.8 million, or 10%.  The increase was driven by higher advertising, retransmission consent and carriage fee revenues as well as an increase in Digital and Data revenues.

Consolidated operating profit was $27.2 million for the first quarter of 2016 compared to $60.9 million in the first quarter of 2015, representing a decline of $33.7 million, or 55%. The decline was primarily attributable to higher programming and promotion expenses as a result of premiering two original series on WGN America in the quarter whereas no original series premiered in the first quarter of 2015, higher network affiliate fees, impairment charges for certain real estate properties and higher expenses from Digital and Data acquisitions in the second quarter of 2015.

Diluted earnings per common share for the first quarter of 2016 was $0.12 compared to $0.37 for the first quarter of 2015.

Read the company’s report here.