Tribune TV-Ent. Adjusted 4Q Rev Up 15%

Tribune Media today reported third quarter 2014 results that included Television and Entertainment segment revenues of $479.1 million in fourth quarter 2014, an increase of $212.6 million, or 80%, as compared to $266.5 million in fourth quarter 2013.

Television and Entertainment Adjusted EBITDA was $202.6 million in fourth quarter 2014, compared to $93.5 million in fourth quarter 2013, an increase of $109.1 million.

On a pro forma basis, Television and Entertainment segment revenues were $479.1 million in fourth quarter 2014, compared to $415.9 million in fourth quarter 2013, an increase of $63.2 million, or 15%, and is composed of:

• Advertising revenues of $381.4 million as compared with $336.9 million in fourth quarter 2013, representing an increase of $44.5 million, or 13%. Increases in political advertising revenues of approximately $49.4 million were partially offset by declines in core advertising of $7.7 million, or -2.4%.
• Local Station retransmission consent fees of $58.4 million in fourth quarter 2014, compared to $34.7 million in fourth quarter 2013, an increase of $23.7 million or 68%, as a result of contract renewals with distribution partners at higher rates.

On a pro forma basis, Television and Entertainment adjusted EBITDA for fourth quarter 2014 was $202.6 million, compared to $155.3 million in fourth quarter 2013. Television and Entertainment Adjusted EBITDA in fourth quarter 2014 included $6.0 million of costs associated with airing Manhattan at WGN America. Television and Entertainment Adjusted EBITDA was further unfavorably impacted by an increase in programming fees and higher costs associated with new syndicated content, including the premiere of the syndicated series Blue Bloods.

For the full-year 2014, elevision and Entertainment segment revenues increased $706.1 million, or 70%, to $1,720.5 million in fiscal 2014 as compared to $1,014.4 million in fiscal 2013. The acquisition of Local TV, as well as growing retransmission revenues in 2014 drove the year-over-year increase.

Television and Entertainment Adjusted EBITDA was $614.8 million in fiscal 2014, compared to $336.0 million in fiscal 2013, an increase of $278.8 million, or 83%.

On a pro forma basis, Television and Entertainment segment revenues were $1,720.5 million, compared to $1,581.2 million in fiscal 2013, an increase of $139.3 million, or 8.8%, and is composed of:

• Advertising revenues of $1,335.9 million in fiscal 2014 as compared with $1,293.3 million in fiscal 2013, representing an increase of $42.6 million, or 3.3%. Increases in political advertising revenues of approximately $74.4 million for the year were partially offset by declines in core advertising of $40.2 million, or 3.3%.
• Local station retransmission consent fees of $229.2 million in fiscal 2014, compared to $130.5 million in fiscal 2013, an increase of $98.7 million, or 76%, as a result of contract renewals with distribution partners at higher rates.

On a pro forma basis, Television and Entertainment adjusted EBITDA was $614.8 million in fiscal 2014, compared to $572.6 million in fiscal 2013. Television and Entertainment adjusted EBITDA in 2014 included $62 million of costs associated with airing Salem and Manhattan at WGN America.

The company as a whole reported consolidated operating revenues grew 85% to $553.4 million as compared to $299.5 million in 4Q’13. For the year, consolidated operating revenues grew 70% to $1,949.3 million as compared to $1,147.2 million.

Peter Liguori, Tribune Media’s president-CEO, said: “Our strong financial and operational results in the fourth quarter and full-year 2014 demonstrate the strength of our strategy to develop Tribune Media into a diverse modern media company.”

“For 2015, we are well-positioned to increase revenue by building our station group market share and growing substantially our retransmission consent and carriage fees. Importantly, we are accomplishing this in an off-cycle political year.”

“In terms of WGN America, we are taking a measured approach to investments in programming, which we believe will increase distribution, advertising revenue, carriage fees and brand value. We are particularly excited about the fourth quarter of 2015, when audiences will get a first-hand look at WGN America’s future, as we will premiere a full slate of exclusive syndicated and original series, which we anticipate will drive significant revenue, EBITDA, and margin growth for years to come.”

“In addition, given the strength of our balance sheet and our ongoing commitment to shareholder returns, we are pleased to announce a special dividend of $650 million and the intention to implement a regular quarterly dividend — all while preserving the financial flexibility to invest in and grow our business.”

“Combined, we are confident that the strength of our broadcast business, the growth trajectory of WGNA and our Digital and Data segments, our robust and valuable real estate portfolio, and our commitment to return capital to shareholders will drive significant shareholder value in 2015 and the years ahead.”

Read the company’s report here.