• by David Goetzl  @dgoetzl, May 7, 2008

A significant bump in political spending, helped by an outlet in Iowa, allowed small station group Young Broadcasting to minimize revenue declines in the first quarter.

With political dollars up some 262% to $1.8 million, revenues dropped a slight 1.8% ($35 million), even as the economy suffered. The company operates the NBC affiliate in Davenport, Iowa--which benefited from spending by candidates of both parties prior to the Jan. 3 caucus there. Also helping were Democratic-candidate dollars at its Green Bay, Wis. station before a primary in that state.

Stripping out political dollars, net revenues declined further at 6%. On a conference call to discuss first-quarter results, the company said it has hopes that political dollars will continue to be a bulwark this year, given its stations in the battleground states of Michigan, Iowa, Wisconsin, Virginia and Louisiana.

The company, which operates 10 stations overall, said its plan to sell MyNetworkTV affiliate KRON in San Francisco is progressing--although hampered by the wobbly credit markets and slowdown in M&A activity. The station, which accounts for more than 30% of company revenues, saw net revenue drop slightly to $11 million in the first quarter, and operating income continued to be negative. Some investors have clamored for the sale, suggesting that the station is a drag on results.

On the overall company operating income front, a cost-reduction program contributed to a 41% jump (to $1.8 million) in the first quarter. The program is expected to save $13 million over the next nine months, the company said.