Belo Blames Lower Auto Revs For Earnings Dip

Dunia-Shive

TV station group owner Belo Corp. hit a bump in the road in its second-quarter results -- all due to lower automotive advertising revenues.

Following months of strong double-digit percent gains in revenue with the ad category, the Dallas-based TV group said earnings went 7.4% lower to $18.1 million as a result of lower Japanese-based auto advertising due to Japan's March earthquake and tsunami.

As a result, Belo said it witnessed expected automotive cancellations during the period.

Still, revenues climbed 2.1% to $166.4 million. Overall advertising spot revenue -- excluding political revenue comparisons -- was up 2.4%. Total spot revenue, including political, was up 1.4%. Political revenue was $1.4 million lower than in the second quarter of 2010. Barter and trade advertising, as well as network compensation and Internet advertising, rose 5.6%.

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With the exception of automotive, other advertising categories performed fairly well, with ad spot revenue up 5%.

Belo -- one of the largest big-market non-network-owned TV groups, which owns and operates 20 television stations -- had previously said the Japan events would hurt the overall pace of its business.

Looking forward, Dunia Shive, president, CEO of Belo Corp., stated: "We expect automotive spending to stabilize late in the third quarter with continued improvement in the fourth quarter. We are currently estimating spot revenue excluding political to be flat in the third quarter of 2011 compared to the third quarter of 2010."

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