PROVIDENCE – The parent company of WJAR-TV NBC 10 fell to a loss in the second quarter, as higher interest expenses, a non-cash tax expense and continuing declines in revenue at its newspapers offset increases in automotive and political advertising spending for its television properties.
Richmond, Va.-based Media General Inc. reported a net loss of $4.3 million, or 19 cents a share, in the 2010 second quarter, compared with net income of $20.6 million, or 90 cents per share, for the same period a year ago. Revenue for the period was $166.2 million, an increase of about 2 percent over the same 2009 period, according to the company.
A bright spot for Media General was the performance of its Ohio/Rhode Island business segment, which includes WJAR and one other television station. The group posted an operating profit of $3.7 million in the quarter, a 42.3 percent increase from the $2.6 million in 2009. Revenue for the stations increased 9.6 percent to $13.8 million as political advertising quintupled to $708,000, national advertising grew 20 percent and digital media revenue grew 9.5 percent. Local revenue, however, fell 2 percent.
The local results mirrored what the company saw across the chain, as broadcast revenue increased 13 percent from last year. Publishing revenue, however, fell 7 percent compared with the 2009 second quarter.
Two major non-operational expenses increased from 2009, as interest expense, reflective of the company’s new financing structure, grew to $17.1 million from $11.3 million. In addition, the company registered income tax expense of $3.7 million, compared with an income tax benefit of $11 million in the 2009 second quarter.
Additional information is available at Media General.
