FOR IMMEDIATE RELEASE
Monday, June 17, 2002
Media General Reports May Revenues and Updates Second-Quarter Earnings Guidance
RICHMOND, Va. — Media General, Inc. (NYSE: MEG) today reported May 2002 revenues of $67 million, up 3.5 percent from $64.7 million in May 2001. This was the company's largest year-over-year increase in 2002. Publishing revenues declined 4.2 percent from last May, Broadcast revenues increased 18.2 percent, and Interactive Media revenues were up 26.9 percent.
In the Broadcast Division, time sales increased 16.9 percent compared to last May. The automotive segment was especially robust, and gains were also realized in the services, medical, entertainment, drug store and corporate categories.
National time sales increased 9.7 percent, with strength in the automotive, corporate, telecommunications and entertainment categories. Local time sales increased 6.1 percent, with gains in the services, health care, specialty stores and financial categories.
Political revenues of $2.3 million were nearly twice expectations. They were bolstered by a hotly contested race in Alabama's First Congressional District, the South Carolina gubernatorial and congressional races, and the Florida and Georgia gubernatorial campaigns.
In the Publishing Division, advertising revenues declined 3.7 percent, from shortfalls in virtually all categories. Retail revenue was 6.6 percent below last year, due to soft advertising schedules from several customers.
Classified revenue decreased 1.3 percent from last year as a result of ongoing weakness in employment advertising. Help-wanted linage decreased 17.3 percent at The Tampa Tribune, 20.5 percent at the Richmond Times-Dispatch, and 25.5 percent at the Winston-Salem Journal. Strong automotive and real estate advertising revenues in several markets partially offset lower help wanted.
National revenue was below last year by 17.9 percent due to weakness in the automotive, telecommunications and pharmaceutical categories. Preprint revenue was above last year by 1.8 percent, with most of the gains in Tampa and Richmond. Circulation revenues were down 2.9 percent, excluding the change to independent carriers in Tampa.
Increased revenues for the Interactive Media Division were the result of various initiatives, especially classified upsells, and new products. Online page views increased in the company's three metro markets.
"Media General is very pleased with the strong rebound in the broadcast business and the recovery in local and national spot business in a majority of our markets. The momentum in time sales growth is continuing into June. Third-quarter pacings are 14 percent ahead of last year, even without considering the political advertising anticipated for the third quarter," said J. Stewart Bryan III, chairman and chief executive officer.
"We're also pleased with the revenue growth of our Interactive Media Division. May was its best month since inception," said Bryan.
"We are disappointed with the softness in the newspaper business, and we are offsetting the revenue declines with lower expenses. Principal contributors to cost savings are lower newsprint expenses and our ongoing hiring freeze. What we experienced in May appears to be continuing into June, and we do not yet have visibility into the third quarter. Therefore, we remain cautious in our outlook for the Publishing Division," said Bryan.
Outlook
"Across the company, our aggressive expense management remains in place. Compared to the end of 2000, we are down about 450 employees, or 5.5%. Based on our performance to date, we expect publishing revenues to be down 3.5% for the second quarter and Broadcast revenues to increase 16%. Second-quarter earnings per share should be approximately 65 cents," said Bryan.
Media General's management will present at the Mid-Year Media Review on June 19 at 11 a.m. A webcast of the presentation will be available at www.mediageneral.com or www.midyearmediareview.com. Media General will announce its second quarter earnings on Tuesday, July 16 before the market opens and will conduct an investor conference call the same day at 11 a.m. that will be webcast.
Forward-Looking Statements
This news release contains forward-looking statements that are subject to various risks and uncertainties and should be understood in the context of the company's publicly available reports filed with the Securities and Exchange Commission. Media General's future performance could differ materially from its current expectations.
About Media General
Media General is an independent communications company situated primarily in the Southeast with interests in newspapers, television stations, interactive media and diversified information services. The company's publishing assets include The Tampa Tribune, the Richmond Times-Dispatch, the Winston-Salem Journal and 22 other daily newspapers in Virginia, North Carolina, Florida, Alabama and South Carolina, as well as nearly 100 other periodicals and a 20 percent interest in The Denver Post. Media General's 26 network-affiliated television stations reach more than 30 percent of the television households in the Southeast, and nearly 8 percent of those in the United States. The company's extensive interactive media offerings include more than 50 online enterprises. Media General also has a 33 percent interest in SP Newsprint Co., which operates newsprint mills in Dublin, Ga., and Newberg, Ore.
Charts follow:
Revenue Report
Ad Linage Summaries
(1 of 3) |
