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/ 10.26.2010 12:00AM
Meredith Beats Expectations
DES MOINES,IOWA: Meredith Corp. came out ahead of the prognosticators, but its
share price nonetheless slipped on news of its fiscal first-quarter results.
The company turned in earnings per share of 56 cents, compared to analyst
expectations of 50 cents. Shares shot up to $35.90 at opening today, then
fell to $34.72 by mid-day. Meredith (NYSE: MDP) shares year-to-date have gained
about 13 percent at $34.72.
Meredith’s 12 TV stations and its production studio turned in a $17 million
profit on revenues of $76 million for the quarter ending Sept. 30, 2010. The
year-ago period yielded $2 million on $60 million. Television spot revenue grew
27 percent, including a record $12 million in net political advertising, and an
8 percent increase in non-political advertising to $58 million. Eight of
Meredith’s ten largest non-political advertising categories charted growth, led
by automotive, retail and media-related advertisers.
Meredith said its Video Studios revenues also grew on 60 percent clearance of
its daily syndie, “Better.” The show is set to launch on KCAL-TV in Los Angeles
in November.
Consolidated revenues for the TV and print businesses rose 4 percent to $344
million. Net profit was $25.7 million versus $18.3 million a year ago.
Meredith expects F2Q11 earnings per share to range from 75 to 80 cents. Total
ad revenues are expected to rise in the low double-digits. Net political is
anticipated to be $15 million to $18 million. Full year earnings per share are
expected to be in the $2.50 to $2.75 range.
Meredith finished the quarter with $21.7 million in cash and equivalents,
compared to $48.6 million as of June 30. Current portion of long-term debt was
$50 million on both dates.
-- Deborah D. McAdams
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Thursday 12:00AM
Broadcasters File Suit Against FCC’s Political File Rules
“The FCC decision to put the political files online will bring broadcasters into the 21st century, and will make already public information more easily accessible to everyone.” Free Press Senior Policy Counsel Corie Wright.