Belo Expects 4Q to Beat Street
December 9, 2009
NEW YORK: Belo fourth-quarter
revenues won’t drop as much as analysts predict, the company’s chief executive
said this week at the USB Global Media & Communications Conference in New
York. Dunia Shive, president and chief executive officer of the Dallas media company
said 4Q revenues will be down in the mid-teens, rather than the 21 percent
predicted by Thomson Reuters analysts.
“Spot revenues excluding political are currently pacing down in the low-single
digits, a significant improvement from the 16 percent decline in the third
quarter of 2009, with the month of December pacing up from a year ago,” Shive
said. “The automotive category is currently pacing down around 10 percent, an
improvement from third quarter’s 36 percent decline. We expect total revenue to
be down in the mid-teens as the company cycles against $35.9 million of
political revenue in the fourth quarter of 2008.
“This percentage decline will be less than the decline in the third quarter,
and is an improvement from previous guidance. We expect fourth quarter combined
station and corporate operating costs to be down in the mid-teens and interest
expense for the fourth quarter to be around $18 million.”
She said full-year operating costs across the broadcast company are expected to
be down 13 percent. Belo cut jobs, froze wages and suspended the company
dividend for the year.
As for 2010, Shive said the Olympics and a strong political season should
contribute to a growth in revenues.
“Keep in mind that we will have approximately $6.8 million in non-cash expense
reductions in 2010 related to the previously disclosed frequency relocation
project compared to $2.6 million in 2009,” she said. “Capital expenditures for
2010 are expected to be approximately $15 million.” More on Belo:
November 16, 2009 : “ ” Belo Completes $275
12, 2009 : “ Belo Offers $275
Million at 8 Percent”
November 3, 2009:
Revenues Decline 18 Percent”
August 3, 2009: “ Belo Reports 2Q in Line
April 30, 2009: “ Belo Reports Net Income
on Bond Retirement“ March 20, 2009: “ Belo Declares 2Q
Dividend, Suspends the Rest“
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