LIN TV saw revenue increase but profits fall in the second quarter of 2013, as an extraordinary gain in 2012 and increased expenses this year combined to depress earnings in relation to the earlier period.
PROVIDENCE – Lin TV Corp. saw its bottom line drop even as revenue continued to rise during the second quarter of 2013, the company reported Tuesday.
For the period ended June 30, the owner-operator of 43 television stations and seven digital channels in 23 U.S. markets posted net income of $7.5 million, a 72.4 percent decline from its 2012 second-quarter results, as earnings per diluted share fell to 13 cents from 48 cents last year.
The drop came even though net revenue for the company increased 35.8 percent to $164.3 million in the quarter, as the company integrated recent TV station and marketing company acquisitions and negotiated higher pay TV subscriber fees, which offset a decline in political advertising of $6.1 million to $1.5 million.
Major expense increases occurred in depreciation of physical assets and amortization of intangible assets, which increased 139 percent to $17 million, as well as interest expense, which grew 55.7 percent to $14.4 million.
In addition, the 2013 results compared unfavorably to last year thanks to an $11.7 million gain in the 2012 second quarter on the sale of discontinued operations.
Lin TV President and CEO Vincent L. Sadusky noted in the company earnings release, that “looking ahead, the absence of political revenues and the slow economic recovery will negatively impact growth for the remainder of 2013.”