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 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.
