Belo Corp., the Texas-based media company that publishes The Providence Journal, announced that it expects a 3 percent drop in spot revenues for June, and for the Television Group spot revenues to be static to up slightly.
Dunia A. Shive, Belo’s executive vice president and chief financial officer was one of those presenting an overview of Belo’s broadcast, newspaper and interactive operations at the Mid-Year Media Review in New York on Tuesday, June 24.
The revenue momentum the company gathered in 2002 continued as 2003 began but, like most businesses, slowed in late February due to uncertainty related to armed conflict in Iraq,” Shive said. “Momentum has been slow to return as advertisers sort out the effects of the war and the economy, and their effects on consumers.”
Shive announced the company’s estimated drop in spot revenues, and also said that May spot revenues were down 1.8 percent “partly due to difficult political comparisons.” In April, the Television Group’s spot revenues increased 6.3 percent, as the company’s television stations benefited from a return in advertising spots that had been cancelled in March due to the war and economic uncertainty, Shive said.
“Newspaper Group advertising revenues were flat in April compared to last year,” Shive added. “May advertising revenues were up about 2.6 percent. In June, advertising revenues should be flat to down slightly. For the second quarter overall, we currently expect Newspaper Group advertising revenues to increase slightly.”
Belo expects total operating costs and expenses to increase about 3 percent in the second quarter, with the largest increases in pension and medical insurance costs, Shive said.
“Belo’s prospects for both the near-term and long-term are very promising because we have leading assets in great markets, our portfolio of assets is diverse, we are smartly leveraging our assets to develop incremental revenue streams and operating efficiencies, and we can be opportunistic in a changing media landscape,” said Robert W. Decherd, Belo’s chairman, president and CEO.
The company reported that it also expects earnings per share for the second quarter of 2003 to be $0.33, compared to reported earnings per share of $0.36 in the second quarter of 2002, which included a non-cash credit of $0.02 per share, related to asset sales in 2000.
Belo reported that spot revenue pacings for the company’s Television Group in July are stronger than Many and June, and spot revenues are expected to be in the low single digits for that month. July advertising is also expected to be stronger at the company’s newspapers.
