Tribune Media Revenue Increases Despite Drop In Politicals

Tribune Media Co. said its results were hurt in the latest quarter as Donald Trump’s campaign spent less than expected on television advertising, according to The Wall Street Journal.

In recent months, broadcasters and television companies have said Mr. Trump’s unorthodox approach to campaign spending was damping results. He was declared the president-elect in a surprising upset early Wednesday morning.

Mr. Trump’s “unprecedented celebrity use of free media lowered his spending,” said Chief Executive Peter Liguori.

The company also saw a related displacement of core advertising as advertisers anticipated a robust political season and “held their dollars even more tightly.”

Tribune also said it was weighing any potential implications of a Trump presidency. “We are discussing the implications [of the election result] as a management team,” Mr. Liguori said on a call with investors before beginning prepared remarks. He indicated the media company could be affected by market volatility but emphasized its strong financial and operational position.

Peter Luguori

“We have tremendous flexibility and that will help us if the waters get choppier in the next coming months,” he said.

Though Tribune anticipates November and December will improved from October, “the Trump effect extended into the fourth quarter” and the company cut its guidance for the year. It expects 2016 revenue to be between $2.15 billion and $2.18 billion, down from between $2.25 billion and $2.28 billion previously. Analysts had expected $2.23 billion.

“We simply couldn’t overcome the unpredictability of Trump,” said Mr. Liguori.

Shares in the company fell 3.4% in early trading Wednesday to $30.11.

Tribune said there was less political spending compared with the 2012 race--down $100 million--but that the company increased its market share and expects to bring in full-year political spending of $161 million, or 97% of its 2012 total.

In all, Tribune Media reported a profit of $145.8 million, or $1.61 a share, compared with of $27.9 million, or 29 cents a share, a year earlier. Adjusted earnings rose to 48 cents a share from 28 cents.

Total revenue increased 6% to $518.1 million.