Primedia is the parent
company of Channel One. Today they released their 2004 third quarter
earnings report.
Below is the part that relates to Channel One News:
"Education Segment revenues were $13.2
million in the third quarter 2004, flat when compared to third
quarter 2003.
Advertising revenues, which are all from Channel One, were $6.8 million,
up $0.3 million or 4.6% in the third quarter 2004. Advertising gains
from movies, consumer products and television networks were offset predominantly
by reduced spending from certain Internet providers. The third quarter
is seasonally low as schools are closed for summer vacation during much
of the quarter. Other revenue was $6.4 million, flat compared to the
third quarter 2003. Contributing to the gain was Channel One production
revenue, which was offset by declines at IMN. Films Media Group revenues
increased 1.8%.
Education Segment expenses were $14.0 million in the third quarter 2004,
down $1.0 million or 6.7%. Education Segment EBITDA was $(0.8) million,
compared to $(1.8) million in the third quarter 2003. Increased operational
efficiency enabled improvement in Segment EBITDA."
From Jim Metrock:
It’s one quarterly disaster after another for Channel One News.
I listened to the conference call that Primedia held today to
explain the quarterly report. Primedia’s top brass briefly mentioned
Channel One.There isn’t much for them to talk about.
Channel One continues to lose advertisers. The controversial nature
of the company is too much for many companies. This is encouraging
for all of us who believe classrooms should be for education and
not marketing.
Channel One did increase their revenue by 4.6% from the same period
a year ago, but a year ago was truly awful for them. They can’t
exist for long by digging their way out of the hole they are in
by 4.6% a quarter. The third quarter of 2003 was a very bad quarter
with Channel One’s division posting a 14% decrease in revenue.
There is mention of "Channel One production revenue." We
don’t know what that means. If anyone does, please email me at [email protected].
Most definitely, Channel One News is a drag on Primedia’s efforts
to get profitable. Our hope is the company will be dismantled and
TVs will be donated to schools. It is a company that cries out
to dissolved.
