Tribune TV-Entertainment 1Q Rev Up 2.1%

Tribune Media today reported first quarter 2015 results that included Television and Entertainment segment revenues of $410.3 million, an increase of 2.5% from $400.2 million in the first quarter of 2014, and were composed of:

• Advertising revenues of $299.7 million as compared with $305.8 million in the first quarter of 2014, representing a decrease of $6.1 million, or 2%. Core advertising (local and national advertising revenues, excluding political revenues) declined by $6 million, or 2.1%, primarily as a result of an approximate $10 million decline in revenues associated with airing the Super Bowl on two NBC-affiliated stations in 2015 as compared to 14 Fox-affiliated stations in 2014. Excluding this impact, core advertising revenues increased 1.4%.
• Local station retransmission consent fees of $68.8 million in the first quarter of 2015, compared to $55.6 million in the first quarter of 2014, an increase of $13.2 million, or 24%, as a result of contract renewals with distribution partners at higher rates.

• Carriage fees of $21.5 million in the first quarter of 2015 compared to $14.1 million in the first quarter of 2014, an increase of $7.4 million, or 52%, as a result of obtaining higher rates for WGN America distribution.

Television and Entertainment Adjusted EBITDA was $135 million in 1Q 2015, compared to $139.7 million in the same period a year ago. The decrease was attributed to an increase in programming expenses associated with new original and syndicated content at WGN America.

Digital and Data segment revenues in the first quarter of 2015 were $50.2 million, compared to $31.5 million in the first quarter of 2014, an increase of $18.7 million. This increase was primarily attributable to the impact of the acquisition of Gracenote, which was consummated January 31, 2014, and the acquisitions of HWW, Baseline and What’s ON, which were consummated in the second half of 2014.

Peter Liguori, Tribune Media’s president-CEO, said: “We generated top-line line growth in the first quarter and made progress against many of our key strategic objectives. First, we grew revenue market share across our stations, including, most importantly, our four largest markets.

“WGN America successfully continued its conversion from a superstation to a cable network and the network is telecast as a cable entity to 60% of our subscriber base, while generating a 52% increase in carriage revenues this quarter.

“Finally, the on-going expansion of our Digital and Data business yielded increased revenue and adjusted EBITDA growth.”

Liguori continued, “Our results in the first quarter and our outlook for the remainder of the year give us confidence that we are on track to achieve our revenue and adjusted EBITDA guidance for the full year.”