DES MOINES: Ad revenue for the 12 TV and single radio station belonging to Meredith Corp. was down 31 percent in the company’s third fiscal quarter of 2009, due mostly to the disappearing automotive sector. Broadcast revenues for the three months ending March 31 were $57 million versus $78 million for the same period a year ago. Operating profit came in at $1.3 million, down from $19 million last year.
Broadcasting operating costs declined 5 percent in the quarter, and to pare it down further, Meredith (NYSE: MDP) plans to centralize master control, traffic and research across the TV stations.
Broadcasting advertising revenues were down 31 percent in the quarter, led by a significant decline in automotive. The final result was better than what Meredith predicted in January, and shares rose from a close of around $21 yesterday to nearly $26 today.
“We were pleased to see most of our television stations post stronger ratings during the recently completed March sweeps,” said Stephen M. Lacy, Meredith president and CEO. “These ratings gains are key to commanding higher revenues for advertising spots in the future.”
Viewership gains in late news included the stations in Phoenix, up 60 percent; Greenville, N.C., up 22 percent; Atlanta, up 20 percent; Hartford, Conn., up 18 percent; Las Vegas and Kansas City, both up 14 percent.
Revenues from retransmission more than doubled in fiscal 3Q09 compared to the year-ago period. (No figure was provided.) Meredith said the company completed new retrans agreements with six of seven major cable operators in its markets.
Meredith’s broadcast, publishing and Internet platforms generated combined revenues of $338 million compared to $392 million a year ago. Net earnings were $25.4 million compared to $46 million last year. – Deborah D. McAdams
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