<PAGE>
 
================================================================================

                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549
                                        
                                  FORM 10-Q/A
                                        

(Mark one)

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934
               FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1998

                                       or


[_]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934
                     FOR THE TRANSITION PERIOD FROM      TO
                                                   ------   ------

                        COMMISSION FILE NUMBER:  0-27000

                         HEARST-ARGYLE TELEVISION, INC.
             (Exact name of registrant as specified in its charter)


DELAWARE                                                            74-2717523
(State or other jurisdiction of incorporation                 (I.R.S. Employer
or organization)                                         Identification Number)

959 EIGHTH AVENUE                                                 (212) 649-2307
NEW YORK, NY  10019                              (Registrant's telephone number,
(Address of principal executive offices)                    including area code)


                    ---------------------------------------
  (Former name, former address, and former fiscal year, if changed since last
                                    report)

Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding twelve months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

Yes [X]       No [_]

As of November 11, 1998, the Registrant had 53,087,756 shares of common stock
outstanding. Consisting of 11,789,108 shares of Series A Common Stock,
41,298,648 shares of Series B Common Stock.

================================================================================
<PAGE>
  
                        HEARST-ARGYLE TELEVISION, INC.

                                        
This amendment to Form 10-Q amends and revises Part I: Item 1 and Part II:
Item 6 on Form 10-Q for the quarter ended September 30, 1998 of Hearst-Argyle
Television, Inc. initially filed with the Securities and Exchange Commission on
November 12, 1998. Unless otherwise indicated, capitalized terms used herein
shall have the respective meanings given such terms in the Form 10-Q.


<PAGE>
 
                         HEARST-ARGYLE TELEVISION, INC.

                                     INDEX
                                                 

PART I   FINANCIAL INFORMATION

<TABLE> 
<CAPTION> 

ITEM 1.  FINANCIAL STATEMENTS                                                                            PAGE NO.
<S>                                                                                                     <C>
        Condensed Consolidated Balance Sheets as of December 31, 1997 and September 30, 1998 (unaudited)..  1
        Condensed Consolidated Statements of Operations for the Three and Nine Months Ended
         September 30, 1997 and 1998 (unaudited)..........................................................  3
        Consolidated Statements of Cash Flows for the Nine Months Ended
         September 30, 1997 and 1998 (unaudited)..........................................................  4
        Notes to Condensed Consolidated Financial Statements..............................................  5

<CAPTION> 

PART II        OTHER INFORMATION

   ITEM 6.  Exhibits and reports on Form 8-K..............................................................  9


Signatures................................................................................................ 10
</TABLE> 
<PAGE>
 
                         HEARST-ARGYLE TELEVISION, INC.

                      Condensed Consolidated Balance Sheets

<TABLE>
<CAPTION>
                                                      December 31    September 30, 1998
                                                          1997          (Unaudited)
                                                  (Revised, see Note 1)
                                                  -------------------------------------
                                                               (In thousands)
<S>                                                 <C>              <C> 
Assets
Current assets:
   Cash and cash equivalents                          $   12,759           $   51,254
   Accounts receivable, net                               89,988               73,698
   Program and barter rights                              35,737               45,614
   Deferred income taxes                                   5,975                4,172
   Related party receivable                                3,695                3,122
   Net assets held for sale                               72,019                  -
   Other                                                   7,070                7,984
                                                      ----------           ----------     
Total current assets                                     227,243              185,844
                                                      ----------           ----------     

Property, plant and equipment, net                        97,804              125,351
                                                      ----------           ----------     
Intangible assets, net                                   661,326              712,115
                                                      ----------           ----------     
Other assets:                                                        
   Deferred acquisition and financing costs,                         
     net                                                  27,796               29,144
   Program and barter rights, noncurrent                   3,511                4,993
   Other                                                  26,429               27,057
                                                      ----------           ----------     
Total other assets                                        57,736               61,194
                                                      ----------           ----------                    

Total assets                                          $1,044,109           $1,084,504
                                                      ==========           ==========
</TABLE>

See notes to condensed consolidated financial statements 

                                       1
<PAGE>
 
                         HEARST-ARGYLE TELEVISION, INC.

                Condensed Consolidated Balance Sheets (Continued)


<TABLE>
<CAPTION>
                                                           December 31,          September 30, 1998
                                                              1997                  (Unaudited)
                                                        (Revised, see Note 1)
                                                        -------------------------------------------                               
                                                                      (In thousands)
<S>                                                    <C>                          <C> 
Liabilities and Stockholders' Equity
Current liabilities:
   Accounts payable and accrued liabilities              $    36,048                   $    40,058
   Program and barter rights payable                          35,769                        45,890
   Other                                                          51                           185
                                                         -----------                   -----------  
Total current liabilities                                     71,868                        86,133
                                                         -----------                   -----------  

Program and barter rights payable                              4,923                         5,028
Long-term debt                                               490,000                       502,596
Deferred income taxes                                        150,274                       157,588
Other liabilities                                                390                           814
                                                         -----------                   -----------   
Total noncurrent liabilities                                 645,587                       666,026
                                                         -----------                   -----------  
Stockholders' equity:                                                        
   Series A preferred stock                                        1                             1
   Series B preferred stock                                        1                             1
   Series A common stock                                         125                           125
   Series B common stock                                         413                           413
   Additional paid-in capital                                202,152                       201,889
   Retained earnings                                         123,962                       151,138
   Treasury stock                                              -                           (21,222)
                                                         -----------                   -----------  
Total stockholders' equity                                   326,654                       332,345
                                                         -----------                   -----------                      

Total liabilities and stockholders' equity               $ 1,044,109                   $ 1,084,504
                                                         ===========                   ===========
</TABLE>

See notes to condensed consolidated financial statements.

                                       2
<PAGE>
 
                         HEARST-ARGYLE TELEVISION, INC.

                 Condensed Consolidated Statements of Operations
                                   (Unaudited)



<TABLE>
<CAPTION>
                                                                 Three Months Ended               Nine Months Ended 
                                                                     September 30,                   September 30,
                                                                 1997            1998           1997             1998
                                                           (Revised, see Note 1)          (Revised, see Note 1)
                                                           ------------------------------------------------------------- 
                                                                        (In thousands, except per share data)
<S>                                                          <C>            <C>             <C>             <C> 
Total revenues                                                $  77,730        $  95,045      $ 221,296        $ 292,010
                                                                                                         
Station operating expenses                                       36,323           43,647         96,919          127,595
Amortization of program rights                                   10,149           10,358         29,201           32,027
Depreciation and amortization                                     5,504            9,037         13,694           26,678
                                                              ----------------------------------------------------------    
Station operating income                                         25,754           32,003         81,482          105,710
                                                                                                         
Corporate general and administrative expenses                     2,079            3,065          6,546            9,619
                                                              ---------------------------------------------------------- 
Operating income                                                 23,675           28,938         74,936           96,091
                                                                                                         
Interest expense, net                                             8,039           10,151         20,524           29,978
                                                              ---------------------------------------------------------- 
Income before extraordinary item and                                                                     
     income taxes                                                15,636           18,787         54,412           66,113
                                                                                                         
Income taxes                                                      6,308            7,882         22,362           28,111
                                                              ---------------------------------------------------------- 
Income before extraordinary item                                  9,328           10,905         32,050           38,002
Extraordinary item, loss on early retirement of                                                          
     debt, net of income tax benefit                                -                (49)           -            (10,826)
                                                              ---------------------------------------------------------- 
Net income                                                        9,328           10,856         32,050           27,176
Less preferred stock dividends                                     (355)            (355)          (355)          (1,066)
                                                              ---------------------------------------------------------- 
                                                                                                         
Income applicable to common stockholders                      $   8,973        $  10,501      $  31,695        $  26,110
                                                              ==========================================================
                                                                                                         
Income per common share - basic:                                                                         
     Before extraordinary item                                $    0.20        $    0.20      $    0.75        $    0.69
     Extraordinary item                                            -                -              -               (0.20)
                                                              ---------------------------------------------------------- 
     Net income                                               $    0.20        $    0.20      $    0.75        $    0.49
                                                              ==========================================================  
                                                                                                         
Number of common shares used in the calculation                  43,998           53,409         42,208           53,678
                                                                                                         
Income per common share - diluted:                                                                       
     Before extraordinary item                                $    0.20        $    0.20      $    0.75        $    0.68
     Extraordinary item                                            -                -              -               (0.20)
                                                              ---------------------------------------------------------- 
     Net income                                               $    0.20        $    0.20      $    0.75        $    0.48
                                                              ==========================================================
                                                                                                         
Number of common shares used in calculation                      44,043           53,690         42,223           53,943
                               
</TABLE>

   See notes to condensed consolidated financial statements.

                                       3
<PAGE>
 
                         HEARST-ARGYLE TELEVISION, INC.

                 Condensed Consolidated Statements of Cash Flows
                                   (Unaudited)
 
<TABLE>
<CAPTION>
                                                                                   Nine months ended
                                                                                     September 30,
                                                                                  1997           1998
                                                                           (Revised, see Note 1)
                                                                           --------------------------------- 
Operating Activities                                                                (In thousands)
<S>                                                                          <C>              <C> 
Net income                                                                     $  32,050        $  27,176
Adjustments to reconcile net income to net cash provided by operating                   
activities:                                                                             
    Extraordinary item, loss on early retirement of debt                               -            17,191
    Depreciation                                                                    5,659            9,959
    Amortization of intangible assets                                               8,035           16,719
    Amortization of deferred financing costs                                          975            1,822
    Amortization of program rights                                                 29,201           32,027
    Program payments                                                              (29,480)         (32,653)
    Fair value adjustments of interest rate protection agreements                     -                471
    Changes in operating assets and liabilities, net                               11,190             (862)
                                                                               -----------------------------  
Net cash provided by operating activities                                          57,630           71,850
                                                                               -----------------------------  
                                                                                        
Investing Activities                                                                    
Acquisition of stations                                                          (111,076)         (20,136)
Acquisition costs                                                                     -             (1,526)
Purchases of property, plant, and equipment:                                            
    Special projects/buildings                                                        -             (4,106)
    Digital                                                                           -             (2,124)
    Maintenance                                                                    (3,762)          (6,545)
                                                                               -----------------------------  
Net cash used in investing activities                                            (114,838)         (34,437)
                                                                               -----------------------------  
                                                                                        
Financing Activities                                                                    
Issuance of Senior Notes                                                              -            200,000
Repayment of Senior Subordinated Notes                                                -           (116,621)
Proceeds from issuance of long-term debt                                          100,000           29,000
Repayment of long-term debt                                                       (15,000)         (85,000)
Financing costs and other                                                             345           (4,634)
Series A Common stock:                                                                  
    Issuances                                                                         -                625
    Repurchases                                                                       -            (21,222)
Dividends paid on preferred stock                                                    (355)          (1,066)
                                                                               -----------------------------  
Net cash provided by financing activities                                          84,990            1,082
                                                                               -----------------------------  
Increase in cash and cash equivalents                                              27,782           38,495
Cash and cash equivalents at beginning of period                                    2,882           12,759
                                                                               -----------------------------  
Cash and cash equivalents at end of period                                      $  30,664        $  51,254
                                                                               =============================
Businesses acquired in purchase transaction:                                            
    Fair market value of assets acquired                                        $ 523,961        $  20,632
    Liabilities assumed                                                          (229,640)            (496)
    Issuance of common stock                                                     (183,245)    
                                                                               -----------------------------  
Net cash paid for acquisitions                                                  $ 111,076        $  20,136
                                                                               =============================
</TABLE>

See notes to condensed consolidated financial statements.

                                       4
<PAGE>
 
                         HEARST-ARGYLE TELEVISION, INC.
                                        

                                        
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)
                               SEPTEMBER 30, 1998
                              (Revised, see Note 1)                   


1.  SUMMARY OF ACCOUNTING POLICIES

BASIS OF PRESENTATION

On August 29, 1997, effective September 1, 1997 for accounting purposes, The
Hearst Corporation ("Hearst") contributed its television broadcast group and
related broadcast operations (the "Hearst Broadcast Group") to Argyle
Television, Inc. ("Argyle") and merged a wholly-owned subsidiary of Hearst with
and into Argyle, with Argyle as the surviving corporation (renamed "Hearst-
Argyle Television, Inc.").  The merger transaction is referred to as "the Hearst
Transaction".  As a result of the Hearst Transaction, Hearst owned approximately
41.3 million shares of the Company's Series B Common Stock, comprising
approximately 77% of the total outstanding common stock of the Company.  During
1998, Hearst purchased approximately 2.0 million shares of the company's Series
A Common Stock (see Note 5), increasing its ownership to approximately 81.3% as
of September 30, 1998.

The merger was accounted for as a purchase of Argyle by Hearst in a reverse
acquisition. The assets and liabilities of Argyle were adjusted to the extent
acquired by Hearst to their fair values based upon purchase price allocations.
The net assets of the Hearst Broadcast Group are reflected at their historical
cost basis. In a reverse acquisition, the accounting treatment differs from the
legal form of the transaction, as the continuing legal parent company (Argyle),
is not assumed to be the acquiror and the historical financial statements of the
entity become those of the accounting acquiror (Hearst Broadcast Group).
Consequently, the presentation of the Company's consolidated historical
financial statements prior to September 1, 1997 have been revised to reflect the
financial statements of the Hearst Broadcast Group.

REVISED PRESENTATION OF CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

As discussed in Note 19 of the notes to the consolidated financial statements 
included in the Company's Annual Report for the year ended December 31, 1997 on 
Form 10 K/A, dated February 11, 1999, the presentation of the financial 
statements for periods prior to September 1, 1997 have been revised to reflect 
the financial statements of the Hearst Broadcast Group.

The following is a summary of net income and earnings per share as previously 
reported and as revised (in thousands, except per share amounts):

<TABLE> 
<CAPTION> 

                                                            For the two     For the one     For the three   For the eight  
                                                            months ended    month ended     months ended     months ended  
                                                             August 31,    September 30,    September 30,     August 31,   
                                                                1997            1997            1997             1997      
                                                            ------------------------------------------------------------- 
<S>                                                         <C>             <C>             <C>             <C> 
Net income (loss):                                                                                                         

      As previously reported (Argyle):                      $ (6,244)         $ 4,790  (a)    $     -        $ (14,539)    
                                                            ============================================================= 
      As revised (Hearst Broadcast Group / Hearst-Argyle):  $      -          $     -         $ 9,328  (b)   $       -     
                                                            ============================================================= 
                                                                                                                           
Earnings (loss) per common 
share - Diluted:                                                                                
                                                                                                                           
      As previously reported (Argyle):                      $   (0.55)        $   0.09  (a)   $      -       $    (1.34)   
                                                            ============================================================= 
                                                                                                                           
      As revised (Hearst Broadcast Group / Hearst-Argyle):  $       -         $      -        $   0.20  (b)  $        -    
                                                            ============================================================= 
<CAPTION> 

                                                           For the one            For the nine
                                                           month ended            months ended
                                                           September 30,          September 30,
                                                           ------------------------------------
                                                               1997                   1997
<S>                                                        <C>                    <C> 
Net income (loss):                                         
                                                           
      As previously reported (Argyle):                       $ 4,790  (a)          $      -
                                                           ====================================
      As revised (Hearst Broadcast Group / Hearst-Argyle):   $     -               $ 32,050 (c)
                                                           ====================================
                                                           
Earnings (loss) per common 
share - Diluted:                
                                                           
      As previously reported (Argyle):                       $   0.09  (a)         $       -
                                                           ====================================
                                                           
      As revised (Hearst Broadcast Group / Hearst-Argyle):   $      -              $    0.75 (c)
                                                           ====================================

</TABLE> 

 (a)  Represents the results of Hearst-Argyle for the one month ended 
      September 30, 1998.

 (b)  Includes the results of the Hearst Broadcast Group for the two months
      ended August 31, 1997.

 (c)  Includes  the results of the Hearst  Broadcast  Group for the eight months
      ended August 31, 1997.





GENERAL

The condensed consolidated financial statements include the accounts of Hearst-
Argyle Television, Inc. (the "Company") and its wholly-owned subsidiaries.  All
significant intercompany accounts have been eliminated in consolidation.

The accompanying unaudited condensed consolidated financial statements do not
include all of the information and notes required by generally accepted
accounting principles for complete financial statements.  In the opinion of
management, all adjustments considered necessary for a fair presentation have
been included.  Operating results for the three and nine-month periods ended
September 30, 1997 and 1998 are not necessarily indicative of the results that
may be expected for a full year.

Certain reclassifications have been made to the December 31, 1997 condensed
consolidated balance sheet to conform to the September 30, 1998 presentation.

2.  ACQUISITIONS

The acquisition of Argyle was accounted for as a purchase and accordingly, the
purchase price and related acquisition costs have been allocated to the acquired
assets and liabilities based upon their fair market value.  The excess of the
purchase price over the net fair market value of the tangible assets acquired
and the liabilities assumed was allocated to identifiable intangible assets
including FCC licenses, network affiliation agreements and goodwill.  The
condensed consolidated financial statements include the results of operations of
Argyle since the date of the acquisition.

On April 24, 1998, the Company loaned STC Broadcasting, Inc. ("STC") $70.5
million ("STC Note Receivable").  The loan bore interest at 7.75% per year and
was collateralized by the stock of the STC subsidiary that owned the assets
comprising WPTZ/WNNE.  On July 2, 1998, STC repaid this $70.5 million loan along
with accrued interest.

                                       5
<PAGE>
 
                         HEARST-ARGYLE TELEVISION, INC.

        Notes to Condensed Consolidated Financial Statements (Continued)
                                   (Unaudited)
                               September 30, 1998

2.   Acquisitions (continued)

Effective June 1, 1998, the Company exchanged its WDTN and WNAC stations with
STC for KSBW, the NBC affiliate serving the Monterey Salinas, CA, television
market, and WPTZ/WNNE, the NBC affiliates serving the Burlington, VT -
Plattsburgh, NY, television market and cash of approximately $20 million (the
"STC Swap"), net of certain working capital adjustments which totaled
approximately $1.4 million.

Giving effect to the Hearst Transaction and the STC Swap discussed above, pro
forma results of operations reflect combined historical results for WCVB, WTAE,
WBAL, KMBC, WISN, WAPT, KITV, WLWT, KOCO, KHBS/KHOG, KSBW, WPTZ/WNNE and fees
for providing management services to the Managed Stations (WWWB, WPBF, KCWE and
WBAL-AM and WIYY-FM) pursuant to a management agreement (See Note 6), as if all
acquisitions and financings (See Note 3) occurred as of January 1, 1997, are as
follows:

<TABLE>
<CAPTION>
                                                                                           Pro Forma
                                                                                Nine months ended September 30,
                                                                                  1997                    1998
                                                                           -----------------------------------------
                                                                             (In thousands, except per share data)
<S>                                                                            <C>                 <C>          
Total revenues                                                                 $  275,779             $  292,061
Net income                                                                     $   33,534             $   38,400
Income from continuing operations applicable to common stockholders            $   32,468             $   37,334
Income per common share    -   basic                                           $     0.60             $     0.70
                                                                                     ====                   ====
                           -  diluted                                          $     0.60             $     0.69
                                                                                     ====                   ====
Pro forma number of shares used in calculations     -  basic                       53,678                 53,678
                                                                                   ======                 ======
                                                    -  diluted                     53,943                 53,943
                                                                                   ======                 ======
</TABLE>

The above pro forma results are presented in response to applicable accounting
rules relating to business acquisitions and are not necessarily indicative of
the actual results that would have been achieved had each of the stations been
acquired at the beginning of the periods presented, nor are they indicative of
future results of operations.

<TABLE>
<CAPTION>
3.   Long-Term Debt

     Long-term debt consists of the following:
                                                  December 31,            September 30,
                                                      1997                    1998
                                              --------------------------------------------
                                                              (In thousands)
<S>                                          <C>                      <C>      
     Credit Facility dated August 29, 1997          $     85,000             $      --
     Senior Notes                                        300,000                  500,000
     Senior Subordinated Notes                           105,000                    2,596
                                              ============================================
                                                    $    490,000             $    502,596
                                              ===============================================
</TABLE>

Senior Subordinated Notes

During February 1998, the Company repaid $102.4 million of the Senior
Subordinated Notes ("Notes") at a premium of approximately $13.9 million. In
addition, the Company wrote-off the remaining deferred financing fees related to
the Notes and incurred expenses related to the repayment of the Notes. The
premium paid, the deferred financing fees relating to the Notes and the expenses
incurred were classified as an extraordinary item, net of related income tax
benefit in the accompanying condensed consolidated statement of operations for
the nine months ended September 30, 1998.

                                       6
<PAGE>
 
                         HEARST-ARGYLE TELEVISION, INC.

        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                                  (UNAUDITED)
                               SEPTEMBER 30, 1998
                                        
3.  LONG-TERM DEBT (CONTINUED)

SENIOR NOTES

On January 13, 1998, the Company issued $200 million aggregate principal amount
of 7.0% Senior Notes Due 2018 (the "$200 million Senior Notes").  The $200
million Senior Notes are senior and unsecured obligations of the Company.  In
addition, the indenture governing the Senior Notes imposes various conditions,
restrictions and limitations on the Company and its subsidiaries. Proceeds from
the $200 million Senior Notes offering were used to repay existing indebtedness
of the Company (See Senior Subordinated Notes, above).

INTEREST RATE RISK MANAGEMENT

The Company has two interest rate protection agreements effectively fixing the
Company's interest rate at approximately 7% on $35 million of its borrowings
under the Credit Facility until June 1999.

   Additional information regarding these interest rate protection agreements in
effect at September 30, 1998 follows:

<TABLE>
<CAPTION>
                                                              AVERAGE          AVERAGE       ESTIMATED FAIR
                                      NOTIONAL AMOUNT       RECEIVE RATE       PAY RATE          VALUE
                                     ------------------------------------------------------------------------
<S>                                <C>                   <C>               <C>             <C> 
Interest rate swap agreements:
     Fixed rate agreement               $20,000,000            LIBOR             7.01%          $(276,636)
     Fixed rate agreement               $15,000,000            LIBOR             6.98%          $(194,336)
</TABLE>

The Company is exposed to credit risk in the event of nonperformance by
counterparties to its interest rate swap agreements.  Credit risk is limited by
entering into such agreements with primary dealers only; therefore, the Company
does not anticipate that nonperformance by counterparties will occur.
Notwithstanding this, the Company's treasury department monitors counterparty
credit ratings at least quarterly through reviewing independent credit agency
reports.  Both current and potential exposure are evaluated, as necessary, by
obtaining replacement cost information from alternative dealers.  Potential loss
to the Company from credit risk on these agreements is limited to amounts
receivable, if any.  The Company enters into these agreements solely to hedge
its interest rate risk.

4. NET ASSETS HELD FOR SALE

Upon completion of the Hearst Transaction, the Company owned television stations
in two areas (Boston and Providence, and Dayton and Cincinnati) with overlapping
service contours in violation of the FCC's local ownership rules.  The FCC's
rules prohibit the ownership of two stations in the same geographic area whose
service contours overlap.  To comply with these rules, the Company was required
to divest one station in each of the aforementioned areas.  Included in the
caption Net Assets Held for Sale on the accompanying condensed consolidated
balance sheet as of December 31, 1997, are the net assets of the stations
located in Providence and Dayton at their carrying values.  The Company
exchanged these assets during the second quarter of 1998, for two television
stations in markets without overlapping service contours (See Note 2).

5. COMMON STOCK

During the second quarter of 1998, the Company's Board of Directors authorized
the repurchase of up to $300 million of its outstanding Series A Common Stock.
The Company expects such repurchases to be effected from time to time in the
open market or in private transactions, subject to market conditions.  During
the three and nine-months ended September 30, 1998, the Company spent
approximately $12.9 million and $21.2 million to repurchase approximately
382,000 shares and 619,000 shares, of Series A Common Stock at an average price
of $33.85 and $34.25, respectively. Hearst has also notified the Company of its
intention to purchase up to 10 million shares of the Company's Series A Common
Stock from time to time in the open market, in private transactions or otherwise
(See Note 1).

                                       7
<PAGE>
 
                         HEARST-ARGYLE TELEVISION, INC.
                                        

        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                                  (UNAUDITED)
                               SEPTEMBER 30, 1998
                                        


6.   RELATED PARTY TRANSACTIONS

The Company recorded revenues of approximately $925,000 and $2.8 million, during
the three and nine-months ended September 30, 1998, respectively, and
approximately $170,000 for both the three and nine-months ended September 30,
1997, relating to the Management Agreement (whereby the Company provides certain
management services, such as sales, news, programming and financial and
accounting management services, with respect to certain Hearst owned or operated
television and radio stations); and expenses of approximately $536,000 and $1.6
million, relating to the Services Agreement (whereby Hearst provides the Company
certain administrative services such as accounting, financial, legal, tax,
insurance, data processing and employee benefits), during the three and nine-
months ended September 30, 1998, respectively, and approximately $200,000 for
both the three and nine-months ended September 30, 1997.  The Company believes
that the terms of all these agreements are reasonable to both sides; there can
be no assurance, however, that more favorable terms would not be available from
third parties.

7.   PROPOSED ACQUISITIONS AND SUBSEQUENT EVENTS

In May 1998, the Company announced that it entered into an agreement to acquire
the nine television and five radio stations of Pulitzer Publishing ("Pulitzer")
in a merger transaction.  The Company will issue $1.15 billion in Series A
Common Stock (calculated on the basis of an equity adjustment "collar"
mechanism) to Pulitzer shareholders and assume $700 million in debt.  The
Company expects the transaction, which is subject to regulatory and shareholder
approval and certain other conditions, to close during early 1999.

In August 1998, the Company announced that it entered into agreements to acquire
the one television station and one time brokerage agreement for another
television station and a production and syndication company from Kelly
Broadcasting Co. ("Kelly") in the aggregate purchase price of $530 million.  The
Company expects this transaction to close during early 1999.

In October 1998, the Company announced that it has obtained commitments from
leading institutional investors to purchase $450 million of senior notes to be
issued by the Company.  The notes will have a maturity of 12 years with an
average life of 10 years, and will bear interest at 7.18% per year.  The
proceeds of this financing, expected to be received in late December and or
January, will be used to fund in part the Pulitzer and Kelly transactions.

                                       8
<PAGE>
 
PART II  OTHER INFORMATION


ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K


(a)     Exhibit No.

        27.2 Financial Data Schedule
     

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<PAGE>
 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                              Hearst-Argyle Television, Inc.
                              -------------------------------------------
                              Registrant




February 11, 1999              By:  /s/ Harry T. Hawks
-----------------                   -------------------------------------
Date                                Harry T. Hawks, Senior Vice President and
                                    Chief Financial Officer
                                    (Principal Financial Officer)


February 11, 1999              By:  /s/ Teresa D. Lopez
-----------------                   -------------------------------------
Date                                Teresa D. Lopez, Vice President and 
                                    Controller (Principal Accounting Officer)

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