Hearst-Argyle 1Q profit more than doubles on settlement

NEW YORK—Hearst-Argyle Television Inc. said Thursday its first-quarter profit more than doubled on a Hurricane Katrina-related insurance settlement.

The media company reported net income after preferred dividends surged to $10 million, or 11 cents per share, compared with $4.3 million, or 5 cents per share, a year earlier.

For the period ended March 31, revenue dipped 3 percent to $165.1 million from $169.4 million because of softening economic conditions and weakening ad sales.

Analysts surveyed by Thomson Financial predicted earnings of 7 cents per share on revenue of $173.3 million. Estimates typically exclude one-time items.

Quarterly results include $9.3 million, or 10 cents per share, in proceeds for a settlement with insurance carriers for lost property, lost income and extra expenses related to Hurricane Katrina.

Ad sales slipped 9 percent to $132.9 million excluding political advertising. Political advertising totaled $9.6 million in the period.