LIN TV reverses loss, posting 2007 profit of $53.68M

PROVIDENCE – LIN TV Corp. (NYSE: TVL), a multimedia company whose stations include the Providence-based WNAC-TV Fox and WPRI-TV CBS, today posted a profit of $53.68 million for the year ended Dec. 31, compared with its 2006 net loss of $234.50 million. Earnings per diluted share rose to $1.03 from the year-ago loss of $4.78.
Full-year net revenue fell 6 percent to $395.91 million, exceeding the company’s November forecast of $393.6 to $395.6 million. (READ MORE) Same-station revenue, excluding the January 2006 acquisition of KASA-TV in Albuquerque, fell 8 percent year-over-year.
“The majority of this decrease was due to the expected reduction in gross political advertising revenues in the off-election year, which were $6.1 million in 2007 compared to a record $58.1 million in 2006,” LIN said in its report.
Meanwhile, core ad revenue, excluding political advertising, rose 3 percent compared with 2006. Digital revenue also continued to grow, more than doubling to $14.9 million from 2006’s $7.2 million.
The company posted full-year operating income of $110.4 million, versus a year-ago loss of $235.8 million. But excluding KASA TV, income from continuing operations increased by $345.5 million; the company cited its 2007 gain on the sale of its 700 MHz licenses and 2006 one-time charges related to restructuring and the retirement of the former CEO.
“We finished 2007 with great momentum,” said LIN TV President and CEO Vincent L. Sadusky.
The company posted fourth-quarter net income of $27.70 million, a 68.4-percent increase from the year-ago $10.32 million. Earnings per diluted share rose to 54 cents from the year-ago 21 cents.
Income from continuing operations more than quadrupled, to $23.47 million from $5.26 million in the final quarter of 2006.
Fourth-quarter net revenue fell 14.9 percent to $108.61 million, a 14.9-percent decline from the year-ago period. But, the CEO noted, “Fourth-quarter core advertising sales, which excludes political, increased 5 percent and digital revenues grew an impressive 131 percent.”
The company launched more than 20 new Web sites during the quarter, including syndicated local channels, on YouTube, as well as local microsites, and saw fourth-quarter total page views rise 61 percent to 118.8 million.
“In addition, we reduced our general operating expenses 6 percent and our cash interest expense decreased by 19 percent, reflecting the $120.1 million pay-down of our debt in 2007 and our favorable debt structure,” Sadusky said.
“These achievements position us strongly for 2008 when we should benefit from increased advertiser demand for our highly-rated stations and the continued growth in our digital revenue.”
Among other fourth-quarter highlights, the company completed its sale of 31 licenses to broadcast at 70 MHz to Aloha Partners LP for $32.5 million, a gain of $25.8 million from the price the company paid at FCC auctions in 2002 and 2003. LIN TV also sold its 33-percent interest in the WAND(TV) Partnership for a total of $6.8 million, yielding a $0.7 million gain. Fourth-quarter retransmission consent fees rose 164 percent year-over year, as LIN signed 16 new agreements with cable TV operators for its analog and high-definition (HDTV) channels, the company said.
Looking ahead, LIN TV predicted first-quarter net revenue of $93.5 to $95.5 million, an increase of 2 percent to 4 percent from the year-ago period.
LIN TV Corp. (NYSE: TVL) owns or operates 29 television stations and Web sites in 17 mid-sized U.S. markets. Its stations include WNAC (Fox) and WPRI (CBS) in Providence; WWLP (NBC) in Springfield, Mass.; and WTNY (ABC) and WCTX (MyNetworkTV) in the Hartford-New Haven region. Additional information is available at www.LINtv.com.