Station Groups Reap 3Q Uptick

Citing NBC's early ratings growth in the new season as a partial benefit, Gannett reported double-digit third-quarter growth for its local station operations, which include 11 NBC affiliates in large markets, such as Phoenix, Minneapolis and Cleveland.

Of course, the every-other-year flood of political ads also propelled the 11 percent revenue growth for the same stations. Gannett does not break out political revenues.

Since last year, however, Gannett has acquired stations in Atlanta and Denver--giving it duopolies in both markets--which led to a larger 19 percent growth in revenue, to $192 million.

"You're beginning to see some nice uptick (with NBC), specifically with the "Sunday Night Football" that has been added. It's gotten off to an extremely positive start," says President-CEO Craig Dubow on a call with analysts. "Some of their other new programming has done quite nicely."

Separately, Media General--which operates 26 network-affiliated stations, including nine NBC--said Wednesday that third-quarter revenues grew 45 percent. But that figure is deceptive, since it was fueled by the acquisition of four NBC stations in top-60 markets, which were included in the year-to-year comparisons.

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Excluding the new acquisitions, year-to-year revenues rose a modest 7 percent, helped by $6 million in political dollars (the new stations brought in an additional $5 million).

Over the first three weeks of the season, NBC's ratings in the key 18-to-49 demo are up 12 percent. "Sunday Night Football" is a top-five program, while "Heroes" is the top new scripted show.

The higher NBC ratings, in contrast to recent struggles that have been a revenue drag, increase prices for the few minutes an hour that local affiliates sell.

Gannett operates NBC stations in eight markets with NFL teams. Stations there can charge a premium when the local team is playing and ratings spike.

Media General has only one NBC station in an NFL market, although several others are in adjacent DMAs.

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