Robert W. Decherd, Belo’s chairman, president and chief executive officer
said: We’re having an outstanding year and operating momentum remains strong.
The Company’s earnings per share for the quarter were a penny ahead of the
third quarter of 1999 and after-tax cash flow per share of $0.55 was 5 cents
ahead of last year. We achieved these outstanding results even with our
increased investment in Belo Interactive’s operations and additional interest
and amortization expense associated with acquisitions made in 1999.
Broadcasting spot revenues increased 14.8 percent, while total
broadcasting revenues were up 12.8 percent, on the strength of Olympics
revenue on our NBC affiliates and political revenue at all of our television
stations. Third quarter revenues included $13.6 million of political revenue
and about $10 million of Olympics advertising. With cash expenses up about
4 percent for Belo’s Television Group, broadcasting cash flow was up a robust
27 percent.
Belo’s Publishing Division revenues advanced almost 8 percent with
advertising revenues up 9.2 percent. Operating cash flow was up 5.4 percent
in the quarter. The Dallas Morning News and The Press-Enterprise in
Riverside, California experienced particularly strong revenue growth. Total
revenue at The Dallas Morning News increased almost 10 percent in the third
quarter with advertising revenues up about 11 percent. The classified
employment category at The Dallas Morning News gained momentum in the third
quarter, with volume increasing almost 8 percent and revenue up 12 percent.
Belo Interactive’s 48 Web sites recorded approximately 56 million page
views per month in the third quarter compared to 47 million in the second
quarter, up almost 20 percent. The number of unique visitors per month
increased to 3.8 million from 3.4 million in the second quarter. Belo
Interactive generated $2.9 million in revenue during the third quarter, up
from $2.6 million in the second quarter of 2000. Net investment in Belo
Interactive operations in the third quarter was $4.5 million before net
product launch expense associated with Digital:Convergence of about $400,000
and intercompany advertising expense of $4.4 million.
Decherd added, We are pleased with the operating performance of both the
Broadcasting and Publishing Divisions and the progress made by Belo
Interactive through the third quarter. The strength of our assets, coupled
with an intense operating focus, will enable Belo to continue to generate
above average top-line growth and even stronger operating cash flow and free
cash flow growth.
