Belo gets politico’s vote of approval as Q2 revs rise
Editor | 28-07-2012
US TV station Belo has taken full advantage of the current, and much needed, uptick in political advertising over the last three months to record a steady increase in revenues for its second financial quarter.
The station owns and operates 20 television stations and their associated websites, which include affiliations with ABC, CBS, NBC, FOX, and the CW, and are claimed to reach more than 14% of US TV households in 15 markets.
For the three month period, the company generated total revenue of $178 million, a 7% increase on that recorded for the same period in 2011. Political revenue in the second quarter of 2012 totalled $9.5 million, an $8.3 million YOY improvement on Q2 2011 and including political spend, total spot revenue, including political, was up 6% but, rather tellingly, excluding political, would have dipped 0.5%. There was also a 2.3% upturn in local spot revenue but a 5.5% decline in national spot revenue. Yet it was a much brighter story for the ‘other’ revenue segment—comprised primarily of Internet advertising, retransmission revenue, barter and trade advertising—which was up 12% in the second quarter. Belo attributed the drivers for this surge to double-digit increases in both Internet and retransmission revenue.
Looking forward to Q3 and beyond, Belo CEO Dunia A. Shive predicted a buoyant Q3 at least. “Third quarter total spot revenue is currently pacing up in the high-teens. We currently expect other revenue, which includes Internet and retransmission revenue, to be up in the low double-digits during the third quarter. As a result, we currently expect the percentage growth in total revenue for the third quarter of 2012 to be up in the mid-to-high teens compared to the prior year, depending on the strength of political. Combined station and corporate operating costs for the third quarter of 2012 are currently expected to be up about 6%,” said Shive.