Journal Q2 was healthy, excluding political

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Journal CommunicationsFor the quarter, revenue of $101.2 million increased 6.0% and operating earnings of $13.1 million decreased 2.6%. Net earnings were $6.6 million, a decrease of 13.3%. Broadcasting revenue increased 15.3% to $62.9 million, or 6.1% on a same-station basis, excluding political. Total broadcast political ad revenue was down 94.3% to $0.3 million, compared to $5.7 million. Local ad revenue, excluding political, was up 25.7%, or 6.0% on a same-station basis. National ad revenue, excluding political, increased 23.3%, and declined 1.8% on a same-station basis. Retrans revenue increased 103.3% to $5.5 million, or 51.7% on a same-station basis.


Television station revenue increased 22.5% to $43 million, or 6.9% on a same-station basis, excluding political. Same-station comps exclude the ops of WVTF-TV Nashville, which they purchased in December 2012.

Television political ad revenue was $0.2 million compared to $5.2 million. Local ad revenue, excluding political, increased 43.2%, or 6.8% on a same-station basis, primarily due to an increase in automotive advertising. National advertising revenue, excluding political, increased 31.0%, and declined 1.0% on a same-station basis, primarily due to decreases in media and restaurant advertising. Operating earnings from television stations were $8.5 million, a decrease of 2.2%, or a decrease of 48.2% on a same-station basis, excluding acquisition costs, both due to the loss of political revenue in 2013.

Q2 revenue from radio stations increased 2.3% to $19.9 million, or 4.7% excluding political revenue. Radio political ad revenue was $0.1 million, compared to $0.5 million. Local ad revenue, excluding political, increased 5.0%, primarily due to an increase in retail advertising. National advertising revenue, excluding political, decreased 4.9% to $1.8 million, primarily due to a decrease in media advertising. Operating earnings from radio stations were $3.8 million compared to $4.4 million, a decrease of 13.8% or a decrease of 19.0% excluding acquisition costs in both years. Radio operating expenses increased 7.1%, or 9.3% excluding acquisition costs in both years, primarily due to employee-related expense increases and the impact of credits received from an industry-wide music licensing fee settlement in 2012.

Publishing revenue decreased 6.5% to $38.4 million, or 0.5% excluding the sale of the northern Wisconsin community publications in December 2012. Operating earnings from publishing were $3.1 million, an increase of 27.0%.

Revenue at the daily newspaper for the quarter decreased 1.9% to $34.6 million. Total advertising revenue of $18.7 million increased 0.6%. Retail advertising revenue increased 2.8% due to successful programs that have grown share with local advertisers. Classified ad revenue dropped 5.4% driven by a decrease in employment and automotive advertising.

Digital ad revenue of $3.3 million increased 10.7%, primarily due to an increase in sponsorship revenue. Circulation revenue of $11.9 million was down 5.4% driven by volume declines.

Community newspapers revenue for Q2 decreased 34.1% to $3.8 million, primarily due to the sale of the northern Wisconsin community publications in December 2012. Excluding revenue of $2.5 million related to the northern Wisconsin community publications in 2012, revenue increased by 13.8%, driven by commercial print revenue from the northern Wisconsin publications that we continue to print following the sale.

Looking to Q3, on a same-station basis excluding political, Olympic and retransmission revenue, Journal expects total broadcast revenue to be up in the mid-single digits. This outlook excludes any potential negative impact of the Time Warner Cable negotiations.

Journal O&Os 15 television stations and 35 radio stations in 12 states; publishes  the Milwaukee Journal Sentinel and several community publications in Wisconsin.