Meredith TV Station Profits Dip
DES MOINES, IOWA: The Meredith local media division comprising
its 12 TV stations posted an operating profit of $17 million on $76 million in
revenues for quarter ending Dec. 31, 2009, the company’s second for fiscal
2010. The same period a year ago yielded $22 million in operating profit on
revenues of $84 million for the division.
Revenues from retransmission fees nearly doubled in the second quarter of
fiscal 2010 from the prior-year period. Meredith (NYSE: MDP) said revenues also
grew at its in-house video production group, driven primarily by growth in
custom video projects for corporate clients.
“We’re encouraged by the strength of our connection with viewers, which has
helped us grow non-political advertising revenues,” said. Meredith chief
Stephen Lacy. “We’re working to build upon this foundation and continuing to
develop other sources of revenue, including retransmission fees and our video
Full F2Q10 revenues for print and broadcast were $337 million, compared to $361
million a year ago. Net earnings were nearly $19 million compared to $12
million a year ago. Earnings per share were 42 cents after a previously
announced $5.5 million charge in the magazine division. EPS finished at 49
cents excluding the charge.
Looking at the third quarter of fiscal 2010, local media non-political advertising is
pacing up percentagewise in the mid-teens, MDP said. Earnings per share are
forecast to come in between 55 and 60 cents.
“Looking to the remainder of the fiscal year, with limited visibility into
customers’ 2010 advertising and marketing budgets, Meredith currently expects
full year earnings per share to range from $1.90 to $2.05, excluding the
special items reported in the first half of fiscal 2010.”
More on Meredith:
January 14, 2010: “Meredith to Take $5.5
“The recessionary economy has impacted the consumer's ability to execute these
types of projects and led to a decrease in advertising spending.”
October 29, 2009: “Meredith Stations Down on
Political and Auto”
iscal 2010 first-quarter revenues for Meredith’s 12 TV stations came in at
$61 million, down from $70 million last year. Operating profit was $2 million
compared to $11 million, attributed to a $5 million dip in political
advertising and continued weakness in automotive.