• by David Goetzl  @dgoetzl, February 25, 2008

The head of the Hearst-Argyle station group, which operates the ABC affiliate in Boston and the NBC outlet in growing Orlando, offered stern comments about the economy Friday--although he projected the company will be able to ride it out.

"We remain concerned about the overall economic conditions of the country," said CEO David Barrett, citing the impact of the housing slump, rising energy costs and increased unemployment. A possible trickle-down effect: the auto category, which dropped 1% in the fourth quarter, continues its downward trajectory this quarter.

Calling these "turbulent and challenging times," Barrett still suggested that H-A would grow in 2008, partly due to expected robust political spending and the Beijing Olympics--which could strengthen the company's 10 NBC stations during a normally soft August.

H-A did post a 13% increase in revenues to $217 million, compared to the same quarter two years ago. That provides a like-for-like comparison that removes any political bump attained from last year's congressional elections. Yet leading into the recent Iowa caucus and New Hampshire primary--the company has stations in both states--it posted $19 million in political dollars, largely in December. (Operating income was $71 million, soaring over the $38 million in the fourth quarter of 2005.)

While profits are still a question mark--although traffic is growing and video capabilities are being added--Barrett said the company has a notable upside. Its online initiatives saw revenues rise 25% in the fourth quarter to $7 million. H-A is bulking up its digital-dedicated sales force, while holding training sessions for executives specializing in traditional sales to familiarize them with off-air opportunities and mechanics.

Separately, in addition to the economic hurdles, Barrett suggested that the recently ended writers' strike hurt prime-time revenues for the company's 29 stations.