Journal Communications reports strong Q1 earnings due to TV and retransmission revenue
Winter Olympics leads to broadcast ad revenue growth, publishing revenue down 2 percent
The broadcaster and publishing company Journal Communications reported its Q1 earnings this morning, coming in with a strong report due to television and retransmission revenue gains.
“We are pleased to report that Journal Communications revenue grew nearly 4% in the first quarter benefiting from the Winter Olympics and growth in television retransmission revenue. In addition, publishing advertising revenue was essentially flat for the quarter,” said Steven J. Smith, Chairman and CEO of Journal Communications.
Revenue came in at $96.6 million in Q1, an increase of 3.7 percent. Digital revenue grew to $4.6 million, up 5.8 percent. Operating earnings increased 43.7 percent to $12.0 million.
While television revenue grew 12.6 percent due to the Olympics, radio revenue fell 4 percent in the quarter to $15.2 million.
With this earnings report, Journal Communications has started consolidating its publishing results, combining its daily and weekly operations. (Will the company spin-off its publishing arm which includes the Milwaukee Journal Sentinel?)
Total revenue for publishing fell 2.7 percent in Q1, though retail enjoyed a good quarter, growing revenue slightly. Classified advertising, which at many newspaper properties once represented close to 50 percent of all ad revenue, accounted for only $3.45 million in the quarter, down 4.6 percent, and only 19.4 percent of total ad revenue. Circulation revenue also fell, down 5.7 percent in Q1.