• May 2, 2003

Net revenues at Hearst-Argyle Television dropped 3.6% to $149.3 million for Q1, the company said Friday. It said the war plus off-cycle comparison against political and Olympics-related advertising dragged down revenues.

Olympics and political revenues in Q1 2002 totaled $20 million, including about $10 million in incremental revenue. In Q1 2003, positive spending in categories like movies, corporate packaged goods, furniture/housewares, retail and telecom offset prior-year incremental revenues. But the war caused a loss of about $5 million in net advertising revenues in March due to cancellations, pre-emptions, schedule adjustments and lost bookings. He said revenues would have been flat compared to the year before without the war.

"The concluding weeks of the quarter made for a challenging period for our nation and for the media businesses who serve as providers of news and information ... We are hopeful that the conclusion of the war bodes well for eventual economic recovery but we believe a sustained improvement in consumer confidence levels, increased employment and capital spending, and a general improvement in macroeconomic indicators will be needed drivers to stimulate meaningful growth in overall ad spending," said David J. Barrett, president/CEO. He said the TV stations had modest positive pacings in Q2.