McGraw-Hill Broadcast Revs Up 10%
TV operations at McGraw-Hill continued to benefit from automotive advertising and more informercial business during the first quarter.
The company's broadcasting group revenue grew by 10.2% to $20.6 million in the first quarter, compared to the same period last year. Net income at McGraw-Hill's Information and Media Group -- at which its TV operations are located -- was up 34.5% to $37.4 million.
In addition to higher automotive and service time sales (infomercials and other direct-response business), the company says there was an increase in retrans revenue. McGraw-Hill says this will offset usual off-year declines in political advertising.
Overall, the company witnessed 16.2% higher net income to $120.0 million, with revenue up 7.7% to $1.3 billion -- due to continued strength from its financial publications and services.
The company's biggest revenue generator, financial-ratings service Standard & Poor's, picked up 10.4% in revenues to $442.9 million -- with net income up slightly, 0.8% to $190.4 million.
Its new division, McGraw-Hill Financial, had a 16.2% rise to $324 million, with net income 35.3% higher to $96.3 million. The group includes TheMarkets.com, and research and desktop financial software tools.
Conversely, McGraw-Hill Education continued to suffer -- it was down 4.6% in revenue to $302.7 million, with 22.2% deeper net losses to $75.5 million. The company said there was declining revenue from educational products, coupled by ramped-up investments for digital infrastructure and product development.
Foreign exchange rates added $2.6 million to the operating loss for the first quarter.