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Granite shows sharp 3Q drop

Granite Broadcasting sustained a net revenue decrease for its third quarter, primarily due to the aftermath of the September 11th terrorist attacks.

Granite's net revenue decreased 21 percent for the quarter ended September 30, 2001 compared to the same period a year earlier. The decrease was primarily due to a weak advertising environment, preemption of $1.1 million prompted by the attacks, the absence of $1.9 million of
political and $2 million of Olympic-related advertising, and the transformation of KNTV in San Francisco.

Third quarter broadcast cash flow declined $8.7 million to negative $1.98 million. The San Francisco duopoly lost $4.95 million in the quarter, partly offset by positive broadcast cash flow generated at the Big Three affiliates and the Detroit WB affiliate.

The Company's Big Three affiliates, which contributed 60% of net revenue, saw net revenue declines of 23 percent or $4.6 million during the quarter, compared to the same period last year.

Expenses increased 9% at the Company's WB affiliates because of increased programming costs and 27% at KNTV, due to its imminent switch to become the Bay Area NBC affiliate at year's end. - Richard Tedesco