FOR IMMEDIATE RELEASE
Wednesday, December 14, 2005
Media General Reports November Revenues; Updates Fourth-Quarter Guidance
RICHMOND, Va. – Media General, Inc. (NYSE: MEG) today reported that November 2005 revenues of $79.7 million increased 3.3 percent from November 2004. On a divisional basis, Publishing revenues increased 4.5 percent, Interactive Media revenues rose 42 percent, and Broadcast revenues showed a small decline of 0.4 percent.
“Media General’s total revenue growth in November reflected strong newspaper Classified and Retail advertising, especially in our Tampa market, continued double-digit increases in Broadcast Local time sales, and robust online revenue growth,” said Marshall N. Morton, president and chief executive officer.
Newspaper advertising revenues for the month increased $2.6 million, or 6.3 percent. Including revenues from the company’s newspaper Web sites, newspaper advertising revenues rose 7 percent for the month and total Publishing revenues increased 5.1 percent.
Classified revenues continued to show positive results and increased $1.4 million, or 9.5 percent. In November, Classified revenue growth was driven by both help-wanted and real estate advertising. Total Classified advertising increased 16.4 percent at The Tampa Tribune, and the Richmond Times-Dispatch and Winston-Salem Journal were up 4 percent and 7.1 percent, respectively. Community newspapers were up 3.2 percent. Including online advertising, Classified revenues increased 11 percent in November.
At the company’s three metro newspapers, employment linage growth rose 5.1 percent, including increases of 2.6 percent at The Tampa Tribune, 5.6 percent at the Richmond Times-Dispatch and 9.3 percent at the Winston-Salem Journal. Real estate linage increased 44.6 percent for the three markets combined, while automotive linage was down 12.3 percent.
Retail revenues saw one of the strongest gains of the year and increased $1.3 million, or 6.2 percent. More than one-half of the increase came from The Tampa Tribune, which was up 13.1 percent, as the result of gains in nearly all categories. The Winston-Salem Journal was up 3 percent due to higher department store and local advertising, while Retail revenues at the Richmond Times-Dispatch declined 1.4 percent, due to reductions in the department store and furniture categories. Community newspaper Retail revenues were up 2.8 percent.
National revenues declined $255,000, or 6 percent. The Tampa Tribune reported a 7.3 percent
decrease due to declines in the automotive and telecommunications categories. The Richmond Times-Dispatch was down 1.8 percent, reflecting a decrease in the telecommunications and movie categories. The Winston-Salem Journal reported an 18.6 percent decline mostly due to lower pharmaceutical advertising.
While some Media General newspapers experienced circulation volume declines in November, eight newspapers reported Daily circulation volume growth and five newspapers did so for Sunday. Due primarily to a change in wholesale rates to independent carriers, for which there was a corresponding expense decrease, Circulation revenues were down 5.9 percent, or $410,000, from last year.
Gross time sales in the Broadcast Division of $28 million were up 3.7 percent, due to strong Local time sales growth, partially offset by the virtual absence of Political advertising in this off-election year.
Local time sales grew $2.8 million, or 17.2 percent, driven by new business development initiatives, particularly in the company’s Tampa, Spartanburg and Birmingham markets. There were advances in the furniture, medical and telecommunications categories, while automotive advertising was flat.
National time sales decreased $450,000, or 4.9 percent. This decrease was due primarily to lower spending in the automotive, specialty stores and drug store categories, which offset increases in telecommunications and department store advertising.
Interactive Media Division revenues rose 42 percent to $1.8 million, fueled by a 38.1 percent increase in Classified advertising, led by employment, various new products and a 31.3 percent increase in Local advertising.
Outlook
For the fourth-quarter of 2005, Media General expects earnings per share to be in the range of $1.00 per share to $1.07 per share. In the 2004 period, buoyed by record Political revenues of $20.5 million for the quarter and a strong month of December, Media General earned $1.55 per share.
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 a diversified communications company operating leading newspapers, television stations and online enterprises, primarily in the Southeastern United States. The company’s
publishing assets include three metropolitan newspapers, The Tampa Tribune, Richmond Times-Dispatch, and Winston-Salem Journal; 22 daily community newspapers in Virginia, North Carolina, Florida, Alabama and South Carolina; and more than 100 weekly newspapers and other publications.
The company’s broadcasting assets include 26 network-affiliated television stations that 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 interactive media assets include more than 50 online enterprises that are associated with its newspapers and television stations. Media General also owns a 33 percent interest in SP Newsprint Company, a manufacturer of recycled newsprint.
View tables
Investor Contact:
Lou Anne Nabhan
(804) 649-6103
Media Contact:
Ray Kozakewicz
(804) 649-6748
|