McGraw-Hill Stations Post Double-Digit Decline
NEW YORK: 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. McGraw-Hill (NYSE: MHP) is primarily a publisher of educational materials. The company also owns Standard and Poor’s investment research service. The TV stations are part of a media division that includes consumer magazines “Aviation Week” and “BusinessWeek,” research firm J.D. Power and Associates, and Platts, an energy sector information service.
Revenues for this media division declined 12 percent to $236.2 million compared to last year. Operating profit fell nearly 42 percent to $14.4 million, including a net pre-tax restructuring charge of $4 million. Foreign exchange rates had a $2.5 million favorable impact on operating profit, but no material effect on revenue.
MHP’s stations include KMGH-TV in Denver; KGTV-TV in San Diego, Calif.; KERO-TV in Bakersfield, Calif.; and WRTV-TV in Indianapolis.
McGraw-Hill as a whole posted 2Q revenues of $1.5 billion, down 12 percent from a year ago. Net income decreased 23 percent to $164.1 million. Earnings per diluted share were 52 cents, compared to 66 cents a year ago. The company revised its full-year revenue outlook, expecting a decline of 5.5 to 6.5 percent, rather than the previous estimate of 4 to 5 percent. Reuters Estimates has MHP 2009 revenues coming in just over $6 billion compared to $6.4 billion for fiscal 2008.
Shares of MHP traded near $33 during most of Tuesday.
-- Deborah D. McAdams
More TVB coverage of McGraw-Hill:
January 27, 2009: “McGraw-Hill TV Stations Post Increase”
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. Revenues in 4Q were up 11.3 percent to $31.8 million, buoyed by political advertising. TV station profit was not broken out. McGraw-Hill (NYSE: MHP) has four high-powers and three low-power stations in Denver and Colorado Springs, Colo.; San Diego and Bakersfield, Calif., and Indianapolis.