June 20, 2006
Belo's Monthly Revenue and Statistical Report May 2006
DALLAS -- Belo Corp. (NYSE: BLC) issued today its statistical report for the month of May. Consolidated revenue for May increased 0.7 percent versus May of last year with an increase in Television Group revenue and an expected decrease in Newspaper Group revenue resulting from one less Sunday in the month.
Television Group revenue increased 6.3 percent in May versus last year, with a 4.2 percent increase in spot revenue. Local spot increased 6.9 percent versus May of the prior year, national decreased 2.5 percent and political revenues were $1.7 million. Advertising revenues from Belo's Television Group Web sites increased 67 percent in May 2006 versus May 2005.
Newspaper Group total revenue decreased 4.2 percent for the month of May versus the prior year, with a 6.6 percent decrease in advertising revenue. Online advertising revenue, which is included in advertising revenue, increased substantially in May, up 56 percent versus May 2005. May 2006 included one less Sunday than May 2005. Adjusting for one less Sunday, Newspaper Group advertising revenue decreased approximately one percent with an estimated two percent decrease at The Dallas Morning News and increases of just less than one percent at The Providence Journal and The Press-Enterprise in Riverside.
At The Dallas Morning News, total revenue decreased 3.2 percent in May versus last year, including an estimated $2.5 million in incremental circulation revenue associated with the implementation of the Circulation Review Team's recommended changes, primarily the move from a buy-sell arrangement to a fee-for-delivery distribution system. On a like-days basis, total revenue at The Morning News increased approximately 2.4 percent in May. On a reported basis, advertising revenues, which were not affected by the increase in circulation revenue, decreased 8.1 percent in May 2006 versus May 2005. Interactive revenues continued strong in May, increasing 63 percent.
Classified revenue decreased 12 percent versus the prior year. On a like-days basis, classified revenue decreased about 3.6 percent with an estimated 9.3 percent increase in classified employment revenue, a decrease of about 14 percent in classified real estate revenue and an approximate 11 percent decrease in classified automotive revenue. On a reported basis, general full-run ROP revenue decreased 16 percent in May versus last year with significant strength noted in the financial category and weakness in the automotive and appliance categories. Retail full-run ROP revenue decreased 15 percent with decreases in the travel and department store categories.
At The Providence Journal, advertising revenue decreased 7.8 percent in May 2006 versus May 2005 with total revenue down 9.1 percent. On a like-days basis, total revenue decreased about 2.3 percent and advertising revenue increased just less than one percent in May.
At The Press-Enterprise, advertising revenues decreased 0.4 percent in May 2006 versus May 2005 with total revenue down 2.2 percent. On a like-days basis, advertising revenue increased just less than one percent and total revenue decreased about one percent. Classified real estate continued to show strength in May, increasing 32 percent on a like-days basis.
Belo Corp. is one of the nation's largest media companies with a diversified group of market-leading television, newspaper, cable and interactive media assets. A Fortune 1000 company with 7,700 employees and more than $1.5 billion in annual revenues, Belo operates in some of America's most dynamic markets in Texas, the Northwest, the Southwest, the Mid-Atlantic and Rhode Island. Belo owns 19 television stations, six of which are in the 15 largest U.S. broadcast markets. The Company also owns or operates seven cable news channels and manages one television station through a local marketing agreement. Belo's daily newspapers are The Dallas Morning News, The Providence Journal, The Press-Enterprise (Riverside, CA) and the Denton Record-Chronicle (Denton, TX). The Company also publishes specialty publications targeting young adults, and the fast-growing Hispanic market, including Quick and Al D a in Dallas/Fort Worth, and El D and La Prensa in Riverside. Belo operates more than 30 Web sites associated with its operating companies. Additional information is available at www.belo.com or by contacting Carey Hendrickson, vice president/Investor Relations & Corporate Communications, at 214-977-6626.
Statements in this communication concerning Belo's business outlook or future economic performance, anticipated profitability, revenues, expenses, dividends, capital expenditures, investments, future financings, or other financial and non-financial items that are not historical facts, are "forward-looking statements" as the term is defined under applicable federal securities laws. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those statements.
Such risks, uncertainties and factors include, but are not limited to, changes in capital market conditions and prospects, and other factors such as changes in advertising demand, interest rates and newsprint prices; newspaper circulation matters, including changes in readership, and audits and related actions (including the censure of The Dallas Morning News) by the Audit Bureau of Circulations; technological changes, including the transition to digital television and the development of new systems to distribute television and other audio-visual content; development of Internet commerce; industry cycles; changes in pricing or other actions by competitors and suppliers; regulatory changes; adoption of new accounting standards or changes in existing accounting standards by the Financial Accounting Standards Board or other accounting standard-setting bodies or authorities; the effects of Company acquisitions and dispositions; the recovery of the New Orleans market (where the Company owns and operates market-leading television station WWL-TV, the CBS affiliate) from the effects of Hurricane Katrina; general economic conditions; and significant armed conflict, as well as other risks detailed in Belo's other public disclosures, and filings with the Securities and Exchange Commission ("SEC") including the Annual Report on Form 10-K.