NYT TV STATIONS AS UNDERDOGS
Jone Fine writes in his blog about The New York Times television business, and shows that was no so good business:
Last year, the Broadcast Media Group accounted for approximately 4% of the Company’s total revenues. In 2006, the Company expects the Group will have revenues of approximately $150 million and operating profit of about $33 million. Depreciation and amortization is expected to be approximately $10 million for the year.
That gets you to $43 million in EBITDA (earnings before taxes, interest, depreciation and amortization) on revenues of $150 million, for an EBITDA margin of 29%.
To put this as simply as possible, 29% is an extremely low margin for TV. TV stations generally post profit margins in the thirties and forties. If I may toggle to a slightly different profit metric, in 2005 Gannett's 21 broadcast station posted operating profit margins of 42.2%.
The Times' projected operating margins for '06: 22%.
Last year, the Broadcast Media Group accounted for approximately 4% of the Company’s total revenues. In 2006, the Company expects the Group will have revenues of approximately $150 million and operating profit of about $33 million. Depreciation and amortization is expected to be approximately $10 million for the year.
That gets you to $43 million in EBITDA (earnings before taxes, interest, depreciation and amortization) on revenues of $150 million, for an EBITDA margin of 29%.
To put this as simply as possible, 29% is an extremely low margin for TV. TV stations generally post profit margins in the thirties and forties. If I may toggle to a slightly different profit metric, in 2005 Gannett's 21 broadcast station posted operating profit margins of 42.2%.
The Times' projected operating margins for '06: 22%.
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