Television digest with electronic reports (Jan-Dec 1952)

1,000,000, it's $752,852; 500,000-1,000,000, $522,443; 250,000-500,000, $440,535; 100,000-250,000, $261,264; under 100,000, $165,999; average, $481,250. (4) Comparison of AM income in TV and non-TV markets. In TV areas, AMs hiked income 4.5% over 1949; in non-TV, increase was 8.3%. In addition, 34.9% of AMs in TV markets reported decrease from 1949, while 27.6% dropped in nonTV areas. Overall industry figures are substantially those reported in March: Total TV-radio revenues were $550,400,000 ($444,500,000 radio, $105,900,000 TV) vs. 1949 ' s $449,500,000 ($415,200,000 radio, $34,300,000 TV). Radio’s total income before taxes rose from $52,700,000 in 1949 to $68,200,000 in 1950, while TV's 1949 loss of $25,300,000 was cut to $9,214,000. Networks and their 14 owned TV stations lost $10,031,000, but other 93 made $817,000 — 53 out of 106 showing profit. Guessing is that TV revenues tripled again in 1951 — despite fact only one new station went on air (WLTV, Atlanta), and late in year at that. Preliminary FCC report on 1951 should be ready by spring. * * * * Foregoing is merely good sample of plethora of statistics in report, which was issued at last minute, too late for more exhaustive study. Commission says copies may be obtained free from its Washington offices — "in single copies only as long as the limited supply lasts." MR. DAMM'S WTMJ-TV— PERSONAL & FISCAL: Next best to a personally conducted tour of Milwaukee Journal’s Radio City (WTMJ & WTMJ-TV) with general manager Walter J. Damm, and a glimpse at its current balance sheets, is to read the article titled "WTMJ-TV" in Fortune Magazine for January. Having enjoyed such a tour some 2VZ years ago, when the then 18-month-old WTMJ-TV was just turning into the black (Vol. 5:25), having glimpsed those balances in confidence, having kept rather close tab on WTMJ-TV operations from time of its December 1947 inaugural, we can tell present and prospective TV station enterprisers that this is "must reading" for them. It’s an amazingly frank case history of a remarkably prudent and profitable telecasting operation. Walter Damm himself wins unaccustomed encomiums from Fortune's editors, not so much for a "cantankerous" personality but for his fabulous achievements. Always a controversial figure in the radio industry, and enjoying it, he obviously relished telling Fortune he doesn't mind being called "the s.o.b. of the industry." Economy, efficiency, up-to-the-minute equipment and successful radio background (a prime requisite for TV management, he thinks) — add to these the backing of one of the country's most prosperous newspapers, and fact that WTMJ-TV is first and only TV station in rich Milwaukee. Then consider Damm's managerial genius, and you have the reasons why its 1951 profit before taxes came to $1 , 105 , 000, its net after taxes to $370,000. That's a 50% return on a capital investment of about $1,000,000, including the TV share of Radio City building costs. Revenue jumped from $1,060,000 in 1950 to $2,230,000 in 1951. Unless costs get out of hand, says Fortune, WTMJ-TV should double gross profit in next few years. * * * * Practically no station operator will let you look at his balance sheet or, if he should, will grant permission to publish the figures. Reasons are good and sufficient. Mr. Damm, however, allowed Fortune to have look for year ended Dec. 31: Of the $2,230,000 gross revenue last year , $1,480,000 (67%) came from spot time sales $565,000 (25%) from networks; $185,000 (8%) miscellaneous program income. Of the $1,125,000 expenses, $570,000 (25% of revenues) were salaries, including most local talent, announcers, engineers, etc., and portion of Journal executives' time; program expenses, $105,000 (5%) ; depreciation over 5 years on equipment, $80,000 (4%); share of building operation costs, $90,000 (4%); license and copyright fees, $70,000 (3%); national advertising representation, $70,000 (3%); supplies, including tubes, $55,000 (2%); all other expenses, $85,000 (4%). Out of the $1,105,000 gross profits, taxes took bite of $735,000, which includes excess profits tax. That left profit after taxes $570,000 (17%).