Graham Media Group, the Detroit-headquartered arm of Graham Holdings Company led on a day-to-day basis by Catherine Badalamente, enjoyed both a strong fourth quarter and full-year 2022, with revenue increases largely attributable to a big infusion of political dollars.
The owner of seven broadcast television stations including flagship NBC affiliate WDIV “LOCAL 4” in Detroit in Q4 2022 experienced a 15% revenue increase to $154.7 million, from $134.1 million in the final three months of 2021.
The revenue increase is due primarily to a $33.3 million increase in political advertising revenue, and this was partially offset by declines in other categories from fewer available advertising spots.
Interestingly, lower retransmission consent fee revenue was seen in the quarter, while digital revenue was also down.
Nevertheless, Q4 ’22 operating income increased to $70 million from $40.3 million thanks to increased revenue and a reduction in incentive compensation costs.
For the full year of 2022, revenue at the television broadcasting division of highly diversified Graham Holdings Co. increased 8% to $535.7 million, powered by a $57.7 million increase in political revenue, increases from Winter Olympics and Super Bowl advertising revenue at the company’s NBC affiliates (WDIV and KPRC-2 in Houston] in the first quarter of 2022, and a $400,000 increase in retransmission revenue.
While per subscriber rates from cable, satellite and OTT providers have grown, Graham said overall subscribers are down due to cord cutting across all platforms, resulting in retransmission revenue net of network fees in 2022 to be down slightly compared with 2021. This, Graham believes, is expected to continue in the future.
In addition to the aforementioned NBC affiliates, GMG’s holdings are comprised of NBC affiliate WSLS-10 in Roanoke-Lynchburg; ABC affiliate KSAT-12 in San Antonio; CBS affiliate WKMG-6 in Orlando; and market-leading unaffiliated news-focused WJXT-4 in Jacksonville along with sibling WCWJ-TV.
