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Fisher Communications Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: August 7, 2012 01:22PM
Fisher Communications Inc. (FSCI) filed Quarterly Report for the period ended 2012-06-30.
Highlight of Business Operations:Our television revenue is significantly affected by network affiliation and the success of programming offered by those networks. Our two largest television stations, KOMO TV and KATU TV, accounted for approximately 60% percent of our television revenue for the six months ended June 30, 2012 and are affiliated with the ABC Television Network. We have thirteen television stations which are affiliated with one of the four major networks. Six of our television stations are affiliated with Univision. Our remaining television stations are independent or subscribe to various programming services. We have affiliation agreements with the ABC Television Network with current terms expiring in August 2014. Our affiliation agreements with the CBS Television Network generally expire in February 2016. Our affiliation agreements with FOX Television Network expire in June 2014 and June 2015. Our affiliation agreement with Univision expires in December 2014. Our broadcasting operations are subject to competitive pressures from traditional broadcasting sources, as well as from alternative methods of delivering information and entertainment, and these pressures may cause fluctuations in operating results.
Television. Television revenue increased $5.8 million and $5.9 million in the three and six months ended June 30, 2012, respectively, compared to the same periods in 2011. This increase was primarily due to an increase in retransmission revenue, core advertising and political advertising.
The increase of $3.0 million in retransmission revenue for the three months ended June 30, 2012 compared to the same period in 2011 was primarily a result of finalizing the renewal of substantially all of our retransmission consent contracts for the 2012-2014 cycle in the second quarter of 2012. The periods covered by these agreements began during the first quarter of 2012. Accordingly, $0.7 million of the retransmission revenue recorded in the second quarter of 2012 was attributable to those contracts for the first quarter of 2012. If the $0.7 million of retransmission revenue had been recorded in the first quarter of 2012, second quarter 2012 retransmission revenue would have increased $2.3 million, or 68% compared to the second quarter of 2011.
Revenue from our ABC-affiliated stations increased 21% and 9% in the three and six months ended June 30, 2012, respectively, compared to the same periods in 2011, primarily due to increases in retransmission revenue and local advertising revenue, partially offset by a decrease in national advertising revenue. Revenue from our CBS-affiliated stations increased 20% and 15% in the three and months ended June 30, 2012, respectively, compared to the same periods in 2011, as a result of increases in retransmission revenue and local and national advertising.
Radio. Radio revenue declined by 2% in both the three and six months ended June 30, 2012, respectively, compared to the same periods in 2011, primarily as a result of the non-renewal of our ten year Joint Sales Agreement with KING FM, which expired in second quarter 2011.
Stocks Discussed: FSCI,