Media General Reports Improved Results

Media General's second quarter operating income increased 19 percent versus a year ago, but it also reported a net loss at the corporate level because of interest expenses, the company announced yesterday.

Operating income, which reflects the performance of individual media properties, increased to $16.3 million largely due to political advertising at the company's TV stations. In addition, advertising in the automotive category for its newspaper and television properties increased 42 percent versus a year ago.

"A net loss of $4.3 million, or 19 cents per share, reflected higher interest expense related to the company’s debt restructuring earlier this year as well as non-cash tax expense. In the 2009 second quarter, net income was $20.6 million, or 90 cents per share, including a tax benefit of $11 million and a gain of $7.1 million from the sale of a television station in Jacksonville, Fla.," the company said in its press release.

Total revenue for the company increased 2 percent versus a year ago while total operating expenses were flat. Newsprint expenses declined nearly 30 percent compared to the second quarter of last year.

"Total Digital Media revenues, including our Advertising Services businesses, increased 8 percent compared with last year. Our Web sites alone generated a 16 percent increase in revenues. Local online revenues continued their robust growth and increased 26 percent in the second quarter, a direct result of sales pressure in our markets. Online Classified revenues grew for the second quarter in a row and increased nearly 16 percent. This resulted from our sales initiatives related to our Internet partnerships with Yahoo! and Zillow. We also focused our online content on relevant news and information, and unique visitors increased 19 percent in the second quarter," said Marshall N. Morton, president and chief executive officer.

Click here for the full release on the Media General Web site.