10.26.2009 02:00 PM
McGraw-Hill TV Revenue Down 24 Percent
NEW YORK: Third-quarter
revenues for McGraw-Hill’s four TV stations fell by 24
percent to $19.1 million compared to the same period last year, the multimedia
company said today. Local and national time sales declined during the quarter,
but absence of political advertising in the non-election year was the biggest
factor in the year-over-year decrease, McGraw-Hill (NYSE: MHP) said.
The company owns KMGH-TV in Denver, KGTV-TV in San Diego, Calif.; KERO-TV in
Bakersfield, Calif.; and WRTV-TV in Indianapolis. It also owns several print franchises,
including AviationWeek, BusinessWeek, McGraw-Hill Construction, Platts,
and research firm J.D. Power and Associates. All are rolled into the
Information & Media division, which generated $239 million for McGraw-Hill
in the third quarter, down 10 percent from a year ago. Operating profit increased
29 percent to $29.5 million.
Consolidated results from McGraw-Hill’s media, education and financial services
divisions yielded $1.9 billion, down 8 percent; and net income of $336 million,
down 14 percent from a year ago. Diluted earnings per share were $1.07 compared
to $1.23 last year.
Harold McGraw III, chairman, president and CEO of the company said the outlook
for full 2009 results would be worse than previously anticipated.
“With market conditions continuing to weaken in school education and
advertising, we now expect revenue for 2009 to decline by approximately 7
percent. We had previously forecasted a decrease of 5.5 to 6.5 percent,” he
said. “But with stringent cost controls, we now expect to achieve the top end
of our $2.20 to $2.25 earnings per share guidance for 2009. At the end of the
second quarter, we had anticipated coming in at the low end of that range.”
Shares of McGraw-Hill dipped nearly 4 percent in trading, from a high of around
$30.90 to $29.36 by mid-afternoon.
More on McGraw-Hill:
July 28, 2009: “McGraw-Hill Stations
Post Double-Digit Decline”
Second-quarter revenues for the four McGraw-Hill TV stations fell 23
percent on declines in local and national time sales. The stations generated
$20.4 million for the quarter. The double-digit percentage decline was in line
with the rest of the broadcast TV sector.
January 27, 2009: “McGraw-Hill TV Stations
The broadcast group within New York publishing giant McGraw-Hill generated
$107.1 million in revenue for 2008, up 4 percent over 2007, the company
reported this week.