Belo predicts growth in retransmission-consent revenue in second half of 2013
TV station group owner Belo Corp. predicted Friday that it will see increased revenue later this year thanks to retransmission-consent deals it expects to strike with pay TV distributors.
"Due to the timing of upcoming renewals with MVPDs [multichannel video programming distributors], the growth rate in retransmission revenue is expected to be higher in the second half of the year than in the first half of the year," Belo said in its fourth-quarter earnings release. The company didn't name the cable operators that are negotiating contract renewals.
Belo, which threatened to pull 16 TV stations in 11 states from DirecTV (Nasdaq: DTV) last fall, said it generated a "double-digit percentage increase" in retransmission-consent revenue during the fourth quarter. The company, which owns ABC, CBS, Fox and NBC affiliates in Texas, Arizona and several other states, is counting on increased retransmission-consent revenue to offset decreased political advertising revenue.
Belo generated $205 million in total revenue in the fourth quarter, up 14 percent compared to the fourth quarter of 2011. It posted net income of 34 cents per share, an increase compared to 29 cents per share this time last year.
- see the release
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