February 8, 2007
Belo's Monthly Revenue and Statistical Report December 2006
DALLAS -- Belo Corp. (NYSE: BLC) today issued its revenue and statistical report for the month of December 2006. Consolidated revenue for December 2006 decreased 0.7 percent versus December 2005.
Television Group revenue increased 2.3 percent in December 2006 versus the prior year, with a 0.6 percent increase in spot revenue. National spot increased 4.8 percent, local spot decreased 2.2 percent and political revenues were $0.3 million. Advertising revenues from Belo's Television Group Web sites increased 27 percent in December 2006 versus December 2005.
Newspaper Group total revenue decreased 3.2 percent for the month of December versus the prior year, with a 4.1 percent decrease in advertising revenue. December 2006 had one more Sunday than December 2005. Adjusting for the additional Sunday, Newspaper Group total and advertising revenue were down approximately 7.8 percent and 9.5 percent, respectively. On a reported basis, online advertising revenue from Belo's Newspaper Group Web sites, which is included in advertising revenue, increased 44 percent in December 2006 versus December 2005.
At The Dallas Morning News, total revenue decreased 2.7 percent in December 2006 versus the prior year, including an estimated $0.8 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 4.2 percent in December 2006 versus December 2005. Adjusting for the additional Sunday in December 2006, total revenue and advertising revenue declined about 7.5 percent and 9.9 percent, respectively. On a reported basis, online advertising revenue increased 43 percent. Retail full-run ROP revenue decreased 6.2 percent with weakness in the department stores and general merchandise categories and strength in the entertainment and grocery categories. General full-run ROP revenue decreased 21 percent in December versus last year with weakness in the automotive and financial categories. Classified revenue decreased 9.0 percent versus the prior year with decreases in the classified real estate and classified automotive categories and an increase in classified employment. Preprint revenue increased 9.0 percent over December 2005 and part-run advertising rose 40 percent on the strength of revenues for the redesigned zoned Metro editions and Neighbors, a group of micro-local community publications, and F!DLuxe, a high-end fashion publication.
At The Providence Journal, advertising revenue decreased 1.8 percent in December 2006 versus December 2005, with total revenue down 1.2 percent. Adjusting for the additional Sunday in December 2006, advertising revenue and total revenue declined about 9.1 percent and 7.5 percent, respectively. Online advertising revenue increased 50 percent on a reported basis in December 2006 versus December 2005 led by a 101 percent increase in online classified employment.
At The Press-Enterprise, advertising revenue decreased 6.8 percent in December 2006 versus December 2005 with total revenue down 7.6 percent. Adjusting for the additional Sunday in December 2006, advertising revenue and total revenue declined about 8.5 percent and 9.0 percent, respectively. On a reported basis, advertising revenue associated with The Press-Enterprise's Web sites increased 41 percent in December.
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 7,100 employees and $1.6 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.