Hearst-Argyle profits dive as ad sales dip
Rev slides 10% to $176.3 mil
The New York-based company said net income fell to $9.7 million in the latest quarter, compared with earnings of $16.3 million in the same period last year.
Revenue slid 10% to $176.3 million.
"(The) results are reflective of the current difficult economic climate and an adverse advertising environment," CEO David Barrett said. "While our results are in line with the guidance we had provided for the quarter, it's evident that overall ad spending is down sharply from 2000's record levels."
Local spending stronger
Local ad spending was stronger than national advertising in the latest quarter, despite softness in automotive, financial services and telecom categories, Barrett said.
"Our group of 12 ABC stations performed more poorly than our 11 NBC stations as a result of ABC Network's weak ratings," he added.
The Hearst-Argyle topper said the company would continue to pare overhead in preparation for anticipated sluggishness in the third and fourth quarters. A year ago, those periods were spiked with revenue from Olympic and political advertising, he noted.
Hearst-Argyle shares closed up 1¢ at $21.75 on Monday. The stock has gained 11% over the past year, with station groups considered potential takeover targets amid relaxation of media ownership rules.
