Strong earnings reports from broadcasters Townsquare Media and Media General, Inc.
The earnings season is winding down, with only a few major media companies still to report – like Tribune Publishing which offers up a look at Q4 on Wednesday of next week, which promises to be interesting reading (and an equally interesting conference call).
In the meantime, a couple new reports were issued this morning.
Townsquare Media, Inc. reported robust revenue and earnings growth for full year 2015. The radio broadcasting company owns 309 radio stations and more than 325 local websites in 66 U.S. markets.
Net revenue for the final quarter of 2015 increased over 20 percent to $113.0 million, and was driven by a $16.1 million increase in Live Events. Net income soared as a result to $10.2 million for full year 2015, versus a loss in 2014.
Media General, another broadcaster, but this time on the local TV side, also reported strong earnings today.
Net revenues increased 69 percent in Q4 to $366 million, compared to $217 million in the prior year, with digital revenues increaseing 223 percent to $44 million. Operating income was $55 million, compared to operating income of $39 million in the prior year.
“2015 was a transformational year for Media General as we successfully integrated the company’s largest group of acquired TV stations and over-achieved our synergy goals,” said President and Chief Executive Officer, Vincent L. Sadusky. “Importantly, we remained focused on executing our strategy and strengthened our business operations. On a comparative basis, our total net revenues for 2015, excluding political advertising, grew 7% versus the prior year. Key drivers were an increase in automotive advertising and pay-TV subscriber fees, which more than offset the decline in digital revenues that occurred while retooling our digital business.”
Up next for the company is the completely of the Nexstar Broadcasting Group merger. Media General had earlier announced a deal to merge with Meredith Corp., but shareholder objections plus a competing bid from Nexstar led to the deal collapsing.
“Looking ahead, we are excited about 2016 as we will realize a full-year of synergies and look forward to the return of political and Olympic advertising. We are also eager to complete our transaction with Nexstar, which will result in a stronger local media company that is better able to serve its communities and advertisers,” Sadusky said.