Belo 2Q Down, Internet, Retrans Revs Up

Belo Corp. earnings inched up in the second quarter, but overall revenue sank because of the weak advertising market, especially from the automotive advertisers.

Belo's earnings moved up to $26.3 million from $24.1 million for the period earning June 30. Advertising revenue was off 6.4%, with a 5.9% drop in local advertising and a 10% reduction in national spot advertising. Political revenues more than doubled the period before to $3.6 million from $1.4 million.

Two areas of improvement were Internet business and retransmission deals.

Advertising revenue from Belo's Internet businesses climbed 7.3% to $7.5 million. Belo says Internet revenues represent 4% of the company's entire revenue. Belo also said third-quarter Internet revenues are pacing at levels comparable to the first quarter of this year.

Retransmission revenues grew 36% to $7.6 million. The company expects to generate approximately $30 million in retransmission revenue for full-year 2008, slightly higher than the previous estimates of $28 million to $29 million.

Belo expects to benefit from next month's Beijing Olympics for its four NBC-affiliated stations. This, and improved political advertising in the period, should bring stronger third-quarter revenue results.

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