Tribune 2Q TV-Entertainment Rev Up 5%

Tribune Media today reported second quarter 2016 results that included Television and Entertainment Segment revenue of $467.1 million, up 5% from $445.6 million in the same period of 2015.

The company said the increase was driven by a $9.4 million increase in net political advertising revenue, an increase in retransmission consent revenue of $13.2 million, or 19%, and an increase in carriage fee revenue of $8.8 million, or 41%, partially offset by a decrease in core advertising (comprised of local and national advertising, excluding political) of $8 million, or 2%.

Television and Entertainment adjusted EBITDA for the second quarter of 2016 was $141.7 million compared to $104.3 million in the second quarter of 2015, an increase of $37.5 million, or 36%, due to higher revenues and lower programming and promotion costs.

Digital and Data segment revenues were  $47.3 million compared to $43.6 million in the second quarter of 2015, an increase of $3.7 million, or 9%. The increase was primarily due to additional revenue attributable to the acquisitions made in May 2015 and higher video revenues, partially offset by declines in music revenue. 

“Our operating results for the second quarter and first-half of this year demonstrate that our fundamental strategies continue to drive solid growth in revenue and Adjusted EBITDA,” said Peter Liguori, Tribune Media’s president-CEO. “Television and Entertainment net core advertising was up in the first six months of the year and flat in the second quarter after adjusting for the two fewer days in the quarter. Gross political advertising revenue is on track to be a record year and to meet our $200 million target.

“Retransmission consent and carriage fee revenues continue to increase, and WGN America is capitalizing on the success of Underground, Outsiders and Salem. Thanks to disciplined cost management, coupled with lower programming expenses, quarterly operating expenses are down from the second quarter of 2015. Importantly, we continue to make progress on our ongoing strategic review, including the monetization of our valuable real estate portfolio in what have been highly competitive bidding processes. We are confident we can deliver strong adjusted EBITDA growth in the second half of 2016 and are reaffirming our full-year consolidated financial guidance.”

The company as a whole reported consolidated operating revenue of $526.1 million compared to $501.5 million in the second quarter of 2015, representing an increase of $24.6 million, or 5%.  The increase was driven by higher advertising revenue despite two fewer selling days in the quarter, retransmission consent and carriage fee revenues, and an increase in Digital and Data revenues.

Consolidated operating profit was was $46.1 million for the second quarter of 2016 compared to $19.8 million in the second quarter of 2015, representing an increase of $26.4 million, or 133%.

Diluted loss per common share for the second quarter of 2016 was $1.76 compared to $0.04 for the second quarter of 2015. Adjusted diluted earnings per share for the second quarter of 2016 was $0.42 compared to$0.19 for the second quarter of 2015. Both diluted loss per common share and adjusted EPS in the second quarter of 2016 include an income tax benefit of $1.8 million, or $0.02 per share, related to certain state income tax matters and other tax adjustments.

Looking foward, the company said: “On June 12, 2016, Tribune Broadcasting’s programming agreement with DISH Network expired and as a result the company’s stations and WGN America have been off Dish Network since such date. If we are unable to enter into a new contract with Dish Network, our retransmission consent and carriage fees and other revenues will be impacted in future periods.”

Read the company’s report here.