New York Times, McGraw-Hill Post Gains

Jan 25, 2005  •  Post A Comment

Two publishing companies with small broadcasting operations reported strong revenue gains for the fourth quarter, as robust political advertising spending helped fuel growth at their television station groups.

New York Times Co., which owns eight TV stations, reported Tuesday that revenue rose 14 percent in the fourth quarter to $46 million, while operating profit jumped 25 percent to $16.3 million. The company attributed the growth to political advertising spending, which came in at $9.5 million in the 2004 quarter, versus $3.2 million a year ago.

The growth wasn’t enough to boost the company’s overall results, however. The company reported that fourth-quarter profit was largely flat at $110.2 million, or 73 cents a share, compared with a year-earlier figure of $110.9 million, or 75 cents a share. Revenue rose 2.5 percent to $903.9 million.

For the year, the company’s net income was $292.6 million, down from a year-earlier figure of $302.7 million. Revenue was up 2.4 percent to $3.3 billion.

Meanwhile, a bounce in political advertising spending helped McGraw-Hill Co.’s four ABC affiliates generate a 23 percent rise in fourth quarter revenue to $34.3 million, and an 11 percent increase in full-year revenue to $114.1 million.

That, in turn, helped McGraw-Hill post a 19 percent increase in net income to $190 million in the fourth quarter and a 10 percent jump in full-year net income to $755.8 million. Revenue rose 11 percent to $1.4 billion in the quarter and was up 7 percent to $5.3 billion for the year.