October 19, 2006
Belo's Monthly Revenue and Statistical Report September 2006
DALLAS -- Belo Corp. (NYSE: BLC) today issued its statistical report for the month of September. Consolidated revenue for September decreased 1.7 percent versus September of last year.
Television Group revenue increased 4.3 percent in September versus last year, with a 12 percent increase in spot revenue. Local spot increased 3.9 percent versus September of the prior year, national spot increased 1.6 percent and political revenues were $5.6 million. Advertising revenues from Belo's Television Group Web sites increased 35 percent in September 2006 versus September 2005.
Newspaper Group total revenue decreased 6.9 percent for the month of September versus the prior year, with a 7.4 percent decrease in advertising revenue. Online advertising revenue, which is included in advertising revenue, increased 41 percent in September 2006 versus September 2005.
At The Dallas Morning News, total revenue decreased 8.9 percent in September versus last year, including an estimated $1.2 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 11 percent in September 2006 versus September 2005. Interactive advertising revenue growth was strong again in September, increasing 33 percent. Retail full-run ROP revenue decreased 7.8 percent with strength in the construction and computers categories and weakness in the insurance and professional services categories. General full-run ROP revenue decreased 36 percent in September versus last year with about 14 points of the variance related to one-time Hurricane
Katrina advertising in September 2005. Within general, strength in the media and telecom categories was offset by decreases in the financial and professional services categories. Classified revenue decreased 5.4 percent versus the prior year with decreases in classified employment, classified real estate and classified automotive. Part-run advertising increased 45 percent in September and is mostly related to new products launched at The Dallas Morning News.
At The Providence Journal, advertising revenue decreased 4.6 percent in September 2006 versus September 2005, with total revenue down 5.2 percent. Interactive advertising revenue in Providence increased over 70 percent in September 2006 versus last year led by a 92 percent increase in classified employment.
At The Press-Enterprise, advertising revenues were flat in September 2006 versus September 2005 with total revenue down 2.3 percent. Classified real estate revenue increased 67 percent in September, the eighth consecutive month it has increased by double digits. Advertising revenue associated with The Press Enterprise's Web sites increased more than 50 percent in September.
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 7,400 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.