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Thursday, July 13, 2006

Media General Reports June Revenues

RICHMOND, Va. – Media General, Inc. (NYSE: MEG) today reported June 2006 total revenues of $70.1 million, a 3.7 percent increase from June 2005. By business segment, Publishing Division total revenues increased 2.1 percent, Broadcast Division total revenues increased 5.4 percent, and Interactive Media Division total revenues rose 32.2 percent. Reported revenues for 2006 and 2005 do not include the revenues of the television stations and their associated Web sites that the company, as previously announced, holds for divestiture. These assets are reported as discontinued operations, as required by accounting rules.

Newspaper advertising in June increased 2.8 percent over last year, reflecting continued growth in Classified and Retail advertising.

Classified advertising revenues increased $735,000, or 4.4 percent. The growth was driven by the continued strength of real estate advertising at The Tampa Tribune, where total Classified revenues increased 9.6 percent. The Richmond Times-Dispatch reported a 2.9 percent increase, while the Winston-Salem Journal saw a decrease of 8.3 percent, due mostly to lower spending in the automotive category. The Community newspaper group was up 3.5 percent in total for Classified advertising.

Real estate linage increased 45.1 percent for the company’s three metropolitan newspapers, more than offsetting a 27.1 percent decrease in automotive linage that continued to reflect lower spending by automotive dealers. The significant growth in real estate linage was driven by a 77.2 percent increase at The Tampa Tribune, which continued to benefit from a strong new-housing market in the Tampa region. Both the Richmond Times-Dispatch and the Winston-Salem Journal are also seeing a strong housing market, resulting in real estate advertising linage increases of 47.6 percent and 7.9 percent, respectively, at those newspapers.

Employment linage at the three metro newspapers decreased 5.9 percent overall. Help-wanted linage was up 2.2 percent at the Richmond Times-Dispatch. The Tampa Tribune and Winston-Salem Journal reported decreases of 19.4 percent and 0.5 percent, respectively. The Tampa decrease reflected softness in help-wanted advertising in some of its auxiliary employment products.

Retail revenues in June increased $410,000, or 2.5 percent, including revenues from new product offerings in many markets. The Tampa Tribune and Richmond Times-Dispatch each generated a 1.9 percent increase in Retail revenues, and the Winston-Salem Journal posted a 7.4 percent gain. The increases resulted mostly from higher spending in the home improvement, department store and financial categories as well as the addition of several new products, including Spanish-language weeklies in Tampa and Richmond. The Community newspaper group saw a 2.7 percent Retail growth, led by increases in the North Carolina and Central Virginia markets.

National revenues decreased $125,000, or 3.5 percent. The Richmond Times-Dispatch reported a 29.7 percent advance due to higher oil company and insurance advertising. The Richmond increase partially offset decreases of 14.4 percent and 13.7 percent, respectively, at The Tampa Tribune and the Winston-Salem Journal. Tampa experienced lower spending in the telecommunications and travel categories, while Winston-Salem had decreased automotive advertising.

Circulation revenues were down $245,000, or 3.9 percent. Approximately one-half of the decline was due to the continued roll-out of a change in wholesale rates to independent carriers at several newspapers. These rate changes, which were completed at all of the company’s newspapers at the end of June 2006, generated a dollar-for-dollar decrease in Circulation expense. Nine Media General newspapers posted increases in net-paid Daily Circulation, while overall volume decreased slightly.

In the Broadcast Division, gross time sales increased $1.3 million, or 5.8 percent, reflecting strong Political advertising that more than offset lower Local and National advertising.

Local time sales decreased $300,000, or 2.1 percent, and reflected lower spending in the automotive and financial categories, partially offset by increases in the fast food and telecommunications categories.

National time sales decreased $475,000, or 6.2 percent, mostly due to continued softness in the automotive and corporate categories, offset partially by increases in telecommunications advertising.

Political revenues for the month were $2.2 million, compared with $160,000 last June, and were mostly derived from gubernatorial, U.S. Senate, and state and local races in Florida, South Carolina, Alabama, and Georgia.

Interactive Media Division revenue growth reflected higher advertising in all categories, led by increases of 17.9 percent and 63.8 percent, respectively, in online Classifieds and National/Regional advertising. Help-wanted and real estate advertising growth was strong in June, and nearly all Media General Web sites generated significantly higher revenues. The National/Regional advertising increase was mostly due to expanded campaigns across multiple Web sites. Local revenues improved 13.8 percent and reflected new direct-sale products such as increased sponsorships. Page views and visitor sessions for the month rose 13 percent and 18 percent, respectively, including Media General’s game sites.

About Media General
Media General is a multimedia company operating leading newspapers, television stations and online enterprises primarily in the Southeastern United States. The company’s publishing assets include three metropolitan newspapers, The Tampa Tribune, Richmond Times-Dispatch, and Winston-Salem Journal; 22 daily community newspapers in Virginia, North Carolina, Florida, Alabama and South Carolina; and more than 150 weekly newspapers and other publications. The company’s broadcasting assets currently include 30 network-affiliated television stations that reach more than 33 percent of the television households in the Southeast and more than 10 percent of those in the United States. The company’s interactive media assets include more than 75 online enterprises that are associated with its newspapers and television stations. Media General also owns a 33 percent interest in SP Newsprint Company, a manufacturer of recycled newsprint.

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