December 8, 2009
Television Company Belo Corp. (BLC) Presents At UBS Global Media & Communications Conference
DALLAS - Belo Corp. (NYSE: BLC), one of the nation's largest pure-play, publicly-traded television companies, presented today at the UBS Annual Global Media & Communications Conference. During the presentation, Dunia A. Shive, Belo's president and Chief Executive Officer, provided an update on the fourth quarter of 2009 and general comments on 2010.
Commenting on the fourth quarter of 2009, Shive said, "Spot revenues excluding political are currently pacing down in the low-single digits, a significant improvement from the 16 percent decline in the third quarter of 2009, with the month of December pacing up from a year ago. The automotive category is currently pacing down around 10 percent, an improvement from third quarter's 36 percent decline. We expect total revenue to be down in the mid-teens as the Company cycles against $35.9 million of political revenue in the fourth quarter of 2008. This percentage decline will be less than the decline in the third quarter, and is an improvement from previous guidance. We expect fourth quarter combined station and corporate operating costs to be down in the mid-teens and interest expense for the fourth quarter to be around $18 million.
"Looking at the full year, 2009 combined station and corporate operating costs are expected to be down approximately 13 percent."
Regarding Belo's outlook for 2010, Shive said, "With an improving economy, the Olympics on our NBC stations and a strong political season, we expect to see revenue growth in 2010. Our approach to expenses next year will be cautious and will be tied to the strength and stabilization of the revenue environment.
"Keep in mind that we will have approximately $6.8 million in non-cash expense reductions in 2010 related to the previously disclosed frequency relocation project compared to $2.6 million in 2009. Capital expenditures for 2010 are expected to be approximately $15 million."
The full text of the presentation and a replay of the Webcast are available on Belo's Web site on the Investor Relations page at www.belo.com.
About Belo Corp.
Belo Corp. (BLC) is one of the nation's largest pure-play, publicly-traded television companies, with 2008 annual revenue of $733 million. The Company owns and operates 20 television stations (nine in the top 25 markets) and their associated Web sites. Belo stations, which include affiliations with ABC, CBS, NBC, FOX, CW and MyNetwork TV, reach more than 14 percent of U.S. television households in 15 highly-attractive markets. Belo stations rank first or second in nearly all of their local markets. Additional information is available at www.belo.com or by contacting Paul Fry, vice president/Investor Relations & Corporate Communications, at 214-977-6835.
Statements in this communication concerning Belo's business outlook or future economic performance, anticipated profitability, revenues, expenses, dividends, capital expenditures, investments, future financings, impairments, and 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, uncertainties regarding the costs, consequences (including tax consequences) and other effects of the Company's spin-off distribution of its newspaper businesses and related assets to A. H. Belo Corporation and the associated agreements between the Company and A. H. Belo relating to various matters; changes in capital market conditions and prospects, and other factors such as changes in advertising demand, interest rates and programming and production costs; changes in viewership patterns and demography, and actions by Nielsen; changes in the network-affiliate business model for broadcast television; technological changes, including the national transition to digital television in June 2009, and the development of new systems to distribute television and other audio-visual content; changes in the ability to secure, and in the terms of, carriage of Belo programming on cable, satellite, telecommunications and other program distribution methods; development of Internet commerce; industry cycles; changes in pricing or other actions by competitors and suppliers; Federal Communications Commission and other regulatory, tax and legal 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, dispositions and co-owned ventures; general economic conditions; and significant armed conflict, as well as other risks detailed in Belo's other public disclosures and filings with the SEC including Belo's Annual Report on Form 10-K/A.