Belo Corp., one of the nation’s largest publicly-traded pure-play television companies, said Thursday that its net income increased 16.8 percent in the first quarter of 2013 compared to the first quarter of 2012 as it saw significant gains in core and total spot revenue.
For the three months ended March 31, the company reported net income of $16.7 million. That is up from $14.3 million a year ago.
Total revenue also climbed 2.8 percent to $160.3 million from $155.9 million in the first quarter of 2012.
The company said that gains in core spot and total spot revenue were higher than a year ago due to strength in the market. Although political revenue in the first quarter of 2013 was $1 million lower than the first quarter of 2012, core spot revenue growth came primarily from strength in the automotive, retail and telecommunications categories. Additionally, Super Bowl revenue was up $1.4 million from the first quarter of 2012.
Dunia Shive, chief executive officer of Belo, said Super Bowl revenues are up 34 percent from 2010, the last time the Super Bowl aired on Belo’s five CBS affiliates.
Also, other revenue, which includes Internet advertising, retransmission revenue, and barter and trade was up 11 percent in the first quarter of 2013 versus the first quarter of 2012. Further interest in interactive products and services contributed to a 22 percent increase in Internet revenue. Retransmission revenue was up 8 percent as well.
Belo has made large efforts to increase core spot revenue in order to prepare for the loss in revenue from political advertising that will hit it in the second and third quarters.
In terms of Belo’s future outlook, Shive said, “Based on recent pacings, we currently estimate core spot revenue to be up 2 to 2.5 percent in the second quarter of 2013 compared to the second quarter of 2012. As we cycle against $9.5 million of political revenue in the second quarter of last year, we currently estimate total revenue to be down 1.5 to 2 percent in the second quarter of 2013, with total revenue excluding political estimated to be up 3 to 3.5 percent,” according to Belo’s first quarter earnings report of 2013.
Belo’s stock closed at $10.90 on April 25, after opening at $10.86. That is up 23 percent from the company’s closing price in February when Belo released its annual report.
