Earnings: Media General 3Q06: Interactive Sales Up Nearly 40 Percent

Sales were up nearly 40 percent to $7.3 million for the interactive division of Media General [MEG] in 3Q06, improving the operating loss to $456,000 compared with a loss of $898,000 in the same quarter last year. Online classifieds, up 24 percent, led the improvement; local revenues rose 63 percent while national/regional revenues more than doubled. Revenues from the Blockdot advergaming business increased 45 percent. Page views and visitor sessions for the third quarter rose 29 percent each, including the new stations’ Web sites. The increase also was aided by including the sites of newly acquired NBC stations. Expenses were $250,000.
During the earnings call, EVP & COO Reid Ashe spoke of initiatives to expand interactive audience and increase revenues: “Content programs included localized content, special features, and improved weather and business/financial information. Revenue growth programs included new classified products in the employment and real estate categories, and a continued emphasis on direct-sale banners, sponsorships and special features, such as video.”
Overall, excluding a gain from the sale of some CBS stations, net income was $8.8 million or 37 cents per share, compared to $9.8 million or 41 cents per share in the same quarter last year. Including new NBC stations, total revenues were $242 million, up 14.3 percent. Without the stations, revenue would have been up 2.2 percent. The results disappointed analysts and the market, sending the stock down 8.2 percent.
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