TV-station ad sales to auto makers dropped Q2, but some local dealers are still spending to clear their inventories, executives of Nexstar and LIN TV told investors on separate earnings teleconferences Tuesday. “We've worked very hard on the local dealer side and that may be why by comparison our automotive results might look a little better than others,” Nexstar CEO Perry Sook said. In general, local ad sales are holding up better than national ads, said LIN TV CEO Vincent Sadusky. “Local is clearly pacing better than national. It’s been pacing better than national all year and that continues into the third quarter as well, but it’s weak.” Both companies cited political ad sales, retransmission consent fees and online sales as revenue sources that help make up for the shortfall in national ad spending. Nexstar’s Q2 sales increased 2.9 percent from a year earlier to $70.7 million. The company swung to a $3.8 million profit from a $1.2 million loss a year earlier on lower interest costs. Nexstar shares gained 6 percent Tuesday. LIN TV Q2 sales gained 2 percent from a year earlier to $103.7 million. It swung to a $215.9 million net loss from a $3.5 million profit a year earlier after writing down $297 million of the value of its broadcast licenses and goodwill. LIN TV shares gained 16 percent.
Viacom said its Q2 sales rose 21 percent to $3.8 billion. Profit fell 6.2 percent from a year earlier -- when Viacom recorded a one-time gain on the sale of MTV Russia -- to $407 million. Sales at its cable networks rose 11 percent to $2.1 billion.
Scripps Co. Q2 sales rose 3.8 percent from a year ago to $664.1 million, the company said Thursday. Revenue this quarter at company TV stations is expected to rise 15 to 17 percent from a year earlier, Scripps said. Companywide, Q2 profit fell 48 percent. The stock fell 7.5 percent.
Broadcast Q1 results: Tribune TV sales increased 5 percent from a year earlier to $278 million, on higher national ad sales. Total Tribune revenue fell 7.8 percent from a year earlier to $1.1 billion. Net income jumped to $1.8 billion on a tax gain related to the company’s new status as an employee-owned Subchapter S corporation… Gray TV sales gained 2 percent from a year earlier to $71 million, as political and online ad sales helped offset declines in local and national ads. The net loss shrank 66 percent from a year earlier to $3.8 million because of some debt Gray paid back in Q1 2007… Salem Communications sales fell 1.3 percent from a year earlier to $54.5 million. Net income increased 69 percent from a year earlier to $5 million on asset sales.
China Mobile added 68.1 million customers in 2007, making 360 million total. The company reported net income of 27.2 billion yuan -- $3.8 billion -- up from 19.9 billion yuan the previous year.
Broadcast Q4 results: Citadel wrote down $1 billion on the value of its assets, reflecting a “continued deterioration in the radio marketplace and… a decline in the Company’s stock price,” it said. Shares fell 21 percent Friday. Sales more than doubled from a year earlier to $245.5 million on its June purchase of ABC Radio. On a pro forma basis, Q4 sales fell 4.1 percent as a result of a $13.1 million sales drop across Citadel’s other stations, it said… Cumulus revenue fell 3.8 percent from a year earlier to $84.4 million. Its net loss grew to $154 million from $51.4 million a year earlier on a $150 million write- down and increased expenses… Entravision sales fell 2 percent from a year earlier to $62.5 million. It swung to a net loss of $47.9 million from a $21.3 million profit in Q4 2006, on an $80.5 million write-down of its outdoor assets, which it agreed to sell to Lamar Advertising Thursday for $100 million. Entravision probably will use the proceeds to pay down debt, Wachovia analyst Marci Ryvicker wrote.
Comstar is building a WiMAX wireless broadband network in the Republic of Armenia, the Russian telco said Thursday. It expects to be done the second half of 2008. Cornet, a Comstar Group member, will implement the network using 3.6- 3.8 GHz spectrum. U.S. gear maker Airspan Networks will provide base stations.
The FCC announced Tuesday that bidders have surpassed the reserve price for one block of 700 MHz licenses offered -
Verizon Wireless will acquire SureWest Communications’ wireless assets in northern California for $69 million. “The purchase includes SureWest Wireless’ spectrum licenses, and network and operations assets in the greater Sacramento area,” which has 3.8 million potential customers, Verizon Wireless said. The licenses overlap Verizon markets. At closing the 50,000-plus SureWest Wireless customers will become Verizon Wireless subscribers. The companies hope for regulatory approvals in Q2.
The Florida Relay Service handled 3.8 million calls for hearing- and speech-impaired people during 2007, according to a Public Service Commission annual report. The PSC said the service is essential to 3 million Floridians whose physical handicaps impair their ability to communicate by phone. The PSC said the state’s adaptive telecom equipment program for the disabled, supported from the relay service surcharge, distributed 41,337 pieces of adaptive telecom equipment in 2007 and served 18,937 more persons in 2007 than in 2006.