Political advertising was very, very good for television and magazine publisher Meredith Corporation in the beginning of the year.
That’s partly why its 92 cents earnings per share is a dime more than predicted in its fiscal third quarter results.
Meredith Chair/CEO Stephen Lacy told analysts in an earnings call that digital advertising went up some 20% and the television owner is still looking for acquisitions to expand its portfolio, yet still integrating two TV stations it acquired in 2015.
Meredith owns and operates 17 television stations. Profit for the local media group grew 47% to $46 million, compared to $31 million for the same quarter a year ago.
Total ad revenues were up 10% Political advertising revenues were $6 million. In particular, Meredith stations generated significant revenues from presidential primaries in Missouri, Nevada and South Carolina. Yet as primaries move to the western states, the company expects to see less of a boost from political until the general election gets closer.
Non-political advertising revenues grew 4 percent to $91 million. Results were led by growth in the automotive, gaming and entertainment categories.
The broadcast owner saw gains in retransmission fees from cable contract renewals.
The company made an offer on two television stations that need to be spun-off to consummate the Nexstar-Media General deal, executives said, however the offers were rejected. Meredith has told the bankers they’re still interested and their offer stands.
Magazine circulation is stable and more millennials are coming into Meredith’s “wheelhouse” as they marry and buy homes, according to Lacy. While clients anticipate declines in the magazine business Meredith says it’s not seeing that as print declines mitigate.
Executives said the company is seeing a shift of advertising dollars back to local television using combo plans of both digital and TV spot buys.
Total company revenues increased 6% to $423 million in the quarter.
