Belo CorporationBLC

Morningstar Rating

Stock Research and Analysis

by Carlton Moore

Belo's broadcast television business benefits from its relationships with major TV networks such as ABC and CBS, which rely on the company to distribute programming across the country. However, the company's debt load is a significant concern.

Broadcasting Read more

Bulls Say

Under an attractive agreement with Yahoo YHOO, 13 of Belo's stations will be the exclusive provider of local news video to Yahoo News in their markets and will get a share of the ad revenue related to the clips.

The regions of the United States where Belo stations are concentrated possess above-average growth opportunities in terms of jobs and population growth.

Belo benefits from the emergence and growth of retransmission consent fees, which are almost entirely incremental profit. Read more

Bears Say

Emerging technologies may one day make Belo expendable. Alternative media options such as the Internet better enable advertisers to measure the return on their investments.

A significant portion of Belo's advertising revenue comes from the automobile industry, which has suffered amid the recession. We expect overall advertising spending to recover slowly and think long-term growth opportunities in broadcast television advertising are limited.

The firm suspended its dividend in 2009 because of its heavy debt load. Read more

Strategy

Belo looks to provide quality local and regional news and develop its Internet operations. However, the firm's primary focus will be debt reduction for the foreseeable future. Read more

Management

Dunia A. Shive was appointed president and CEO in February 2008. The move was prompted by the spin-off of Belo's newspaper business. Shive has extensive experience with Belo, having held various management positions since 1993, including COO. Previous Read more

Profile

Belo Corporation is a leading independent television station group. The company owns 20 television stations that reach 14% of U.S. television households. The primary affiliates Read more

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