Journal Reports 1Q Radio Revenue Increases 6.7%

Steven J. Smith

Journal Communications, Inc. Thursday  announced results for its first quarter ended March 31, 2013.

“We are very pleased to report that Journal Communications experienced revenue growth in the first quarter at both our television and radio stations and improving trends at the Journal Sentinel daily newspaper,” said Steven J. Smith, Chairman and CEO of Journal Communications.

Broadcasting

• For the first quarter, broadcasting revenue increased 31.1% to $58.2 million or 6.0% on a same-station basis. Total broadcast political advertising revenue decreased 61.4% to $0.5 million. Local advertising revenue, excluding political, was up 25.1%, or 3.2% on a same-station basis. National advertising revenue, excluding political, increased 41.0%, or 7.5% on a same-station basis. Retransmission revenue increased 145.1% to $5.4 million. Broadcasting operating earnings of $9.5 million increased 41.9%.

Television

• Revenue from television stations for the first quarter increased 43.4% to $42.3 million, or 7.6% on a same-station basis. Television political advertising revenue was $0.4 million compared to $1.2 million. Local advertising revenue, excluding political, increased 36.7%, or 3.2% on a same-station basis, primarily due to an increase in automotive advertising. National advertising revenue, excluding political, increased 50.1% or 9.5% on a same-station basis, primarily due to increases in media and restaurant advertising. Operating earnings from television stations were $7.1 million, an increase of 84.3%. Television operating expenses increased 37.2%, or 10.4% on a same-station basis, excluding acquisition costs, primarily due to increases in network fees and employee-related costs.

Radio

• For the first quarter, revenue from radio stations increased 6.7% to $15.9 million, or 2.8% on a same-station basis. Radio political advertising revenue was $0.1 million in each of 2013 and 2012. Local advertising revenue, excluding political, increased 7.2%, or 3.3% on a same-station basis, primarily due to an increase in retail advertising. National advertising revenue, excluding political, increased 2.1%, but decreased 1.3% on a same-station basis, primarily due to a decrease in communications advertising. Operating earnings from radio stations were $2.4 million compared to $2.9 million, a decrease of 15.3%. Radio operating expenses increased 11.9%, or 8.1% on a same-station basis, primarily due to employee-related expense increases and a non-cash building impairment charge of $0.2 million.