PROVIDENCE, R.I. (AP) — Lin TV Corp. said Tuesday that healthier advertising trends and a big bump in politics ads, as well as a gain on a sale and some lower expenses, fueled second-quarter profit.
Shares of the television and online news company jumped 9.5 percent.
The Providence, R.I.-based company earned $27.1 million, or 48 cents per share, up from $1.1 million, or 2 cents per share, in the same quarter last year. Excluding discontinued operations, the company posted a profit of $15.5 million.
Revenue rose 20 percent to $121 million from $101 million because of a rebound in auto ads and demand for political advertising as the country nears the presidential election this November. Revenue from local ads, retransmission fees and TV station websites rose 14 percent to $74.3 million. Revenue from political advertising alone increased four-fold to $7.6 million.
Meanwhile, interest expense fell 27 percent to $9.3 million. Operating expenses rose 11 percent, a slower increase than the revenue gain.
The bump in political and auto ads is continuing in the current quarter, while the Summer Olympics are also helping revenue, said CEO Vincent Sadusky. Lin TV expects third-quarter revenue of $25.2 million to $32.2 million, an increase of 26 to 33 percent from a year ago.
Lin TV shares added 31 cents to close at $3.58. Over the past 52 weeks, the company's shares have traded between $1.75 and $5.