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TMCNet: Nexstar Broadcasting Group sees rise in ad revenue [The News-Gazette, Champaign-Urbana, Ill.]

[March 12, 2010]

Nexstar Broadcasting Group sees rise in ad revenue [The News-Gazette, Champaign-Urbana, Ill.]

(News-Gazette (Champaign-Urbana, IL) Via Acquire Media NewsEdge) Mar. 11--The parent company of WCIA-TV saw increases in core advertising revenue during the fourth quarter of 2009, and its chairman predicts continued increases this year.

Nexstar Broadcasting Group's local advertising revenue was up 6 percent for the quarter that ended Dec. 31, and national advertising was up 10.5 percent.

"This trend is extending into 2010 and will be reflected in the first-quarter results and throughout the year," said Nexstar Chairman Perry A. Sook.

"With the ad environment improving and auto advertising increasing, Nexstar expects a return to growth in 2010," he said.

Nexstar reported net income of $967,000 in the fourth quarter, compared with a $21.3 million net loss during the same quarter a year ago.

For full-year 2009, Nexstar had a net loss of $12.6 million, down from a $78 million net loss in full-year 2008.

Meanwhile, Nexstar is looking to diversify revenues. Its revenue from e-media was up nearly 20 percent in the fourth quarter, and revenue from retransmission consent fees was up 62 percent.

Local advertising still makes up the biggest piece of the pie, accounting for more than half of Nexstar's gross revenues. National advertising accounts for about 21 percent, retransmission consent fees for nearly 8 percent and e-media revenues for just 4 percent.

Nexstar, based in Irving, Texas, owns, operates, programs or provides services to 62 stations in 14 states. Its stations collectively reach about 11.5 percent of U.S. households.

In other business news: --Profitable quarter for Bergner's parent. Bon-Ton Stores, which operates Bergner's in Champaign and Elder-Beerman in Danville and Mattoon, reported comparable-store sales were down 2.4 percent for the quarter that ended Jan. 30, compared with the same quarter a year earlier.

For the full year that ended Jan. 30, comparable-store sales were down 5.4 percent from the previous year.

Even so, Bon-Ton's financial results improved. The York, Pa.-based company had net income of $80.3 million for the quarter, compared with an $87.7 million net loss a year earlier. For the full year, Bon-Ton had a net loss of $4.1 million, compared with a $170 million net loss the previous year.

Company President Bud Bergren said the company cut its selling, general and administrative expenses by $70 million last year.

--Area telecom revenue down, profit up. Mattoon-based Consolidated Communications saw revenue decline from 2008 to 2009 but still managed to improve profitability.

The telecommunications company saw decreases in local access lines, long-distance lines and dial-up subscribers and increases in broadband, DSL, Internet Protocol TV and Voice Over Internet Protocol subscribers.

Revenues dropped from $418 million in 2008 to $406 million in 2009, while net income increased from $6.1 million in 2008 to $25.9 million in 2009.

For the quarter that ended Dec. 31, net income totaled $7.3 million, compared with a net loss of $3.3 million during the same quarter a year earlier.

The company recently announced the sale of its Consolidated Market Response division and plans to close its operator services division.

"We expect these transactions to have a slightly positive impact to our earnings and cash flow going forward," Chief Financial Officer Steve Childers said.

To see more of The News-Gazette, or to subscribe to the newspaper, go to http://www.news-gazette.com.

Copyright (c) 2010, The News-Gazette, Champaign-Urbana, Ill.

Distributed by McClatchy-Tribune Information Services.

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