‘Underground’ Helps Grow Tribune Media Revenue, But Also Increases Q1 Costs

Peter Liguori-led company whiffs on earnings, tops sales forecasts

Tribune Media’s first-quarter 2016 earnings dropped from the prior year to an adjusted 18 cents per share, nearly a dime shy of Wall Street’s 27-cent forecast. Q1 2015 had marked 40 cents in adjusted earnings per share (EPS), setting the company up for a hefty decline.

But revenue grew by 10.1 percent this time around to $520.5 million, besting media analysts forecasts at the company’s top line. Tribune’s Television and Entertainment arm increased sales by 11 percent, thanks to political advertising, as well as carriage and retransmission fees. Digital and data revenue rose as well, though at more modest levels.

“We had yet another quarter of strong top-line growth,” CEO Peter Liguori said. “Our broadcast business posted solid results, highlighted by continued growth in core advertising, retransmission consent and carriage fee revenues, as well as very strong spending on political advertising.”

Unfortunately, costs were also hiked up, as cable channel WGN America premiered two new original series to start this fiscal year — it debuted zero in the prior year’s first quarter. Still, Liguori and co. will take the ratings growth — especially out of “Underground.”

“At our cable network, WGN America, the undeniable success of this quarter’s two new original series, ‘Outsiders’ and ‘Underground,’ demonstrates that our plan to reinvent the network is working better than we could have imagined,” Liguori said. “We are pleased with our first quarter results and as our reaffirmed full year guidance indicates, we expect significant Adjusted EBITDA growth for the remainder of 2016.”

Sans adjustments, Tribune Media EPS was 12 cents for the 90 days ended March 31, versus 37 cents in the comparable quarter last year.

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