Media General Q1 Loss/shr Widens; Sees Q2 Revenue In Line With View

(RTTNews) - Media General Inc. (MEG) reported that its first-quarter loss per share widened to $0.20, from $0.06 in the prior year.

President and Chief Executive Officer, Vincent L. Sadusky, said "We commenced this historic year by delivering terrific results in the first quarter. Political advertising exceeded our expectations and helped drive 16% growth in total net revenues and 31% growth in Adjusted EBITDA. Excluding political, total net revenues grew 11% versus the prior year. Additional key drivers for our performance were an increase in pay-TV subscriber fees and diligent expense management."

Operating income, excluding merger related and restructuring expenses, was $52 million, compared to $26 million in the prior year. Operating loss inclusive of these expenses was $18 million, compared to operating income of $21 million in the prior year, which is primarily due to a $60 million one-time break-up fee paid to Meredith Corporation in January 2016.

Net revenues increased 16% to $343 million, compared to $297 million in the prior year.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.04 per share and revenues of $340.17 million for the quarter. Analysts' estimates typically exclude special items.

Net local revenues, which include net local advertising revenues and retransmission consent fees, increased 11% to $230 million, compared to $207 million in the prior year.

Net political revenues were $16 million, compared to $1 million in the prior year.

The Company expects that net revenues for the second quarter of 2016 will increase in the range of 13% to 17% or $40 million to $54 million, as compared to the prior year.

Total net revenues for the second-quarter are expected to be in the range of $361 million to $375 million. Analysts expect the company to report revenues of $368.25 million.

The Company expects direct operating and selling, general and administrative expenses to increase in the range of 13% to 14% or $27 million to $29 million as compared to $213 million in the second quarter of 2015.