September 20, 2006
Belo's Monthly Revenue and Statistical Report August 2006
DALLAS -- Belo Corp. (NYSE: BLC) today issued its statistical report for the month of August. Consolidated revenue for August increased 3.2 percent versus August of last year with an 8.4 percent increase in Television Group revenue partially offset by a 1.2 percent decrease in Newspaper Group revenue.
Robert W. Decherd, Belo's chairman, president, and chief executive officer, said, "As in July, advertising revenues in August were strong in Belo's Television Group while Newspaper Group advertising revenues were below our original internal projections. We continue to be pleased by the steady and impressive growth in Belo's online revenues. Given the uneven nature recently of retail and national advertising that is impacting the newspaper industry and other media, it is unlikely that Belo's Newspaper Group will meet the third quarter revenue guidance we provided in our second quarter 2006 earnings release of flat newspaper advertising revenue versus the prior year."
August Statistical Report
Television Group revenue increased 8.4 percent in August versus last year, with a 6.3 percent increase in spot revenue. National spot increased 13.3 percent versus August of the prior year, local spot was flat and political revenues were $1.4 million. Advertising revenues from Belo's Television Group Web sites increased 57 percent in August 2006 versus August 2005 Newspaper Group total revenue decreased 1.2 percent for the month of August versus the prior year, with a 1.9 percent decrease in advertising revenue. Online advertising revenue, which is included in advertising revenue, increased 47 percent in August 2006 versus August 2005.
At The Dallas Morning News, total revenue decreased 0.6 percent in August versus last year, including an estimated $1.4 million in incremental circulation revenue associated with the change from a buy-sell arrangement with contractors to a fee-for-delivery distribution system. Advertising revenues, which were not affected by the increase in circulation revenue, decreased 2.3 percent in August 2006 versus August 2005. Interactive advertising revenues continued to exhibit exceptional growth in August, increasing 43 percent. General full-run ROP revenue increased 7.5 percent in August versus last year with significant increases noted in the media and industrial categories. Retail full-run ROP revenue increased 3.3 percent with strength in the furniture and sporting goods categories and weakness in the educational and apparel categories. Classified revenue decreased 4.4 percent versus the prior year with an increase of 2.8 percent in classified real estate revenue, a 1.2 percent increase in classified employment revenue, and a 19 percent decrease in classified automotive revenue. Preprint revenue decreased 13 percent in August, primarily due to softness in the consumer goods, telecom and department stores categories.
At The Providence Journal, advertising revenue decreased 1.1 percent in August 2006 versus August 2005, with total revenue down 1.9 percent. Interactive advertising revenue in Providence increased over 70 percent in August 2006 versus last year led by sizable gains in classified employment, classified automotive and classified real estate.
At The Press-Enterprise, advertising revenues decreased 1.7 percent in August 2006 versus August 2005 with total revenue down 2.5 percent. Classified real estate revenue increased 31 percent in August, the seventh consecutive month it has increased by double digits. Advertising revenue associated with The Press Enterprise's Web sites increased almost 40 percent in August.
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 Dia 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.