Tribune 3Q TV-Entertainment Rev Up 3%

Tribune Media today reported third quarter 2015 results that included Television and Entertainment segment revenue of $429.7 million compared to $418.3 million in the third quarter of 2014, an increase of $11.4 million, or 3%.

That revenue was composed of:

• Advertising revenues of $319.5 million as compared with $321.9 million in the third quarter of 2014, representing a decrease of $2.4 million, or 1%. Core advertising (comprised of local and national advertising revenues, excluding political revenues) increased by $12.1 million, or 4.3%. Offsetting the increase in core advertising was a decrease in net political advertising of $16.7 million due to 2015 being an off-cycle political year.

• Local station retransmission consent fees of $69.9 million in the third quarter of 2015, representing an increase of $11.8 million, or 20%, from $58.1 million in the third quarter of 2014, as a result of contract renewals with distribution partners at higher rates that became effective in late 2014.

• Carriage fees of $19.5 million in the third quarter of 2015 compared to $14.0 million in the third quarter of 2014, representing an increase of $5.5 million, or 39%, as a result of obtaining higher rates for WGN America distribution.

Television and Entertainment adjusted EBITDA for the third quarter of 2015 was $122.5 million, compared to $132.7 million in the third quarter of 2014. Television and Entertainment adjusted EBITDA was unfavorably impacted primarily by lower political revenues and increased programming expenses. Television and Entertainment broadcast cash flow for the third quarter of 2015 was $108.0 million, compared to $107.8 million in the third quarter of 2014.

Digital and Data segment revenues in the third quarter of 2015 were $46.6 million, compared to $43.4 million in the third quarter of 2014, an increase of $3.1 million, or 7%. This increase included the acquisitions of HWW and Baseline, which were consummated in the second half of 2014, as well as the acquisitions of Infostrada Sports, SportsDirect, Covers and Enswers Inc., all of which were acquired in the second quarter of 2015, and the favorable impact of the additional month in 2015 of Gracenote, which was acquired in January 2014, partially offset by lower music revenues.

“Our solid third quarter results reflect the consistent focus we have on our long-term growth strategies,” said Peter Liguori, Tribune Media’s president-CEO. “We delivered growth across all our key revenue streams – advertising, carriage fees and retransmission fees — and converted WGN America to a basic cable network 18 months ahead of our initial schedule.

“We see clear and compelling evidence that sports and news programming, especially in major markets, continues to accelerate the growth of our local station business. Our investment in high-quality original content is driving revenue growth now via increased carriage fees for WGN America and is expected to do so in the future through a series of distribution platforms.

“As a result of these focused initiatives, we continue to generate value for our MVPD and advertising partners, and create highly appealing programming for our audiences.

“In the near term, we are seeing encouraging trends in the advertising marketplace and believe we are well positioned to reach the upper half of our consolidated Adjusted EBITDA guidance range for 2015.

“Looking to the future, we are confident that we have the right strategies in place to continue to deliver strong operating results as well as return long-term sustainable value to our shareholders.”

The company as a whole reported consolidated operating revenue of $488.6 million compared to $474.9 million in the third quarter of 2014, representing an increase of $13.7 million, or 3%. Consolidated operating profit for the third quarter of 2015 decreased $16.5 million to $38.8 million, from $55.3 million in the third quarter of 2014.

Read the company’s report here.