Journal Reports 5.1 Percent Increase In Radio Revenue

Stephen J. Smith

Journal Communications, Inc. Thursday announced results for its third quarter ended September 28, 2014.

“We are pleased to report that Journal Communications third quarter revenue of $105 million grew more than 8%, driving an operating earnings increase of 40%. Earnings per share in the quarter were $0.14 compared to $0.09 last year,” said Steven J. Smith, Chairman and CEO of Journal Communications.

“Journal benefitted from continued growth in television retransmission revenue along with significant political and issue advertising spending in a number of our markets."

“Our focused broadcast sales efforts grew both television and radio revenue, excluding retransmission and political, by approximately 3% and drove television and radio digital revenue up 22% and 31%, respectively."

“Publishing experienced a soft quarter due to lower retail and classified spending and circulation volume declines. A publishing expense reduction initiative in the fourth quarter will create a lower expense base in the business going forward."

"Journal Communications continues to work with The E.W. Scripps Company to complete our previously announced transaction. We expect to close the transaction in the first half of 2015.”

Highlights:

• Revenue from radio increased 5.1% to $21.6 million. 
• Radio political advertising revenue was $0.4 million in 2014 compared to $0.1 million in 2013. 
• Local advertising revenue, excluding political, increased 3.3% to $18.5 million, primarily due to an increase in automotive and medical advertising. 
• Digital revenue, which is reported in local revenue, was $0.8 million, up 30.8%. 
• National advertising revenue, excluding political, decreased 1.6%. Excluding political revenue, total revenue was $21.2 million, up 3.4%.
• Operating earnings from radio were $4.1 million compared to $3.5 million, an increase of 16.1%. Radio operating expenses increased 2.8% on higher employee related costs and sports rights fees.