<PAGE>
 
                       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 JUNE 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:  0-2700

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

<TABLE>
<S>                                                 <C>
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 officer)                        including area code)
</TABLE>

     -------------------------------------------------------------------
  (Former home, 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 August 11, 1998, the Registrant had 53,325,363 shares of common stock
outstanding. Consisting of 12,026,715 shares of Series A Common Stock,
41,298,648 shares of Series B Common Stock.
<PAGE>
 
                        HEARST-ARGYLE TELEVISION, INC.

                                        
This amendment No. 2 to Form 10-Q amends and revises Part I: Item 1 and Part II:
Item 6 on Form 10-Q for the quarter ended June 30, 1998 of Hearst-Argyle
Television, Inc. initially filed with the Securities and Exchange Commission on
August 14, 1998 (as amended on December 10, 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

  ITEM 1. FINANCIAL STATEMENTS
<TABLE> 
                                                                                        Page
<S>                                                                                     <C> 
          Condensed Consolidated Balance Sheets as of December 31, 1997 and June
               30, 1998 (unaudited).............................................         1
          Condensed Consolidated Statements of Operations for the Three and Six
               Months ended June 30, 1997 and 1998 (unaudited)..................         3
          Consolidated Statements of Cash Flows for the Six Months Ended June
               30, 1997 and 1998 (unaudited)....................................         4
          Notes to Condensed Consolidated Financial Statements..................         5

PART II   OTHER INFORMATION

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

Signatures......................................................................        10
</TABLE> 
<PAGE>
 
PART I  FINANCIAL INFORMATION

     ITEM 1.  FINANCIAL STATEMENTS


                         HEARST-ARGYLE TELEVISION, INC.


                     CONDENSED CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
 
                                                                                      
                                                                    DECEMBER 31,                    JUNE 30,
                                                                       1997                          1998
                                                               (Revised, see Note 1)              (UNAUDITED)
                                                            -------------------------------------------------------
                                                                                   (In thousands)
ASSETS
Current assets:
<S>                                                              <C>                     <C>
 Cash and cash equivalents                                            $12,759                   $13,938
 Accounts receivable, net                                              89,988                    85,938
 Program and barter rights                                             35,737                    12,567
 Deferred income taxes                                                  5,975                     5,975
 Related party receivable                                               3,695                     2,303
 Net assets held for sale                                              72,019                         -
 STC Note Receivable                                                        -                    51,055
 Other                                                                  7,070                     6,503
                                                                      -------                   -------
Total current assets                                                  227,243                   178,279
                                                                      -------                   -------

Property, plant and equipment, net                                     97,804                   124,043
                                                                      -------                   -------

Intangible assets, net                                                661,326                   716,736
                                                                      -------                   -------
Other assets:
 Deferred acquisition and financing costs,
  net                                                                  27,796                    28,033
 Program and barter rights, noncurrent                                  3,511                     3,904
 Other                                                                 26,429                    27,134
                                                                      -------                   -------
Total other assets                                                     57,736                    59,071
                                                                      -------                   -------

Total assets                                                       $1,044,109                $1,078,129
                                                                   ==========                ==========
</TABLE>
                                        
See notes to condensed consolidated financial statements.



                                       1
<PAGE>
 
                         HEARST-ARGYLE TELEVISION, INC.


               CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
                                        
<TABLE>
<CAPTION>
 
                                                                                              JUNE 30,
                                                                DECEMBER 31,                   1998
                                                                    1997                    (UNAUDITED)
                                                             (Revised, see Note 1)
                                                          ---------------------------------------------------
                                                                            (In thousands)
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
<S>                                                            <C>                      <C>
   Accounts payable and accrued liabilities                           $36,048                 $41,460
   Program and barter rights payable                                   35,769                  13,472
   Other                                                                   51                     433
                                                                   ----------              ----------
Total current liabilities                                              71,868                  55,365
                                                                   ----------              ----------

Program and barter rights payable                                       4,923                   3,755
Long-term debt                                                        490,000                 531,596
Deferred income taxes                                                 150,274                 152,428
Other liabilities                                                         390                     630
                                                                   ----------              ----------
Total noncurrent liabilities                                          645,587                 688,409
                                                                   ----------              ----------
Commitments and contingencies

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                 202,195
   Retained earnings                                                  123,962                 139,926
   Treasury stock                                                           -                  (8,306)
                                                                   ----------              ----------
Total stockholders' equity                                            326,654                 334,355
                                                                   ----------              ----------

Total liabilities and stockholders' equity                         $1,044,109              $1,078,129
                                                                   ==========              ==========

</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                    SIX MONTHS ENDED
                                                             JUNE 30,                              JUNE 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                                        $81,513          $109,713            $143,566          $196,965
Station operating expenses                             30,517            41,506              60,596            83,948
Amortization of program rights                          9,533            10,846              19,052            21,669
Depreciation and amortization                           4,102             8,800               8,190            17,641
                                              ----------------------------------------------------------------------------
Station operating income                               37,361            48,561               55,728           73,707

Corporate general and administrative expenses           2,338             3,119                4,467            6,554
                                              ----------------------------------------------------------------------------
Operating income                                       35,023            45,442               51,261           67,153

Interest expense, net                                   7,384             8,867               12,485           19,827
                                              ----------------------------------------------------------------------------
Income before extraordinary item and
  income taxes                                         27,639            36,575               38,776            47,326

Income taxes                                           11,313            15,313               16,054            20,229
                                              ----------------------------------------------------------------------------
Income before extraordinary item                       16,326            21,262               22,722            27,097

Extraordinary item, loss on early retirement of
  debt, net of income tax benefit                           -              (808)                   -           (10,777)
                                              ----------------------------------------------------------------------------
Net income                                             16,326            20,454               22,722            16,320

Less preferred stock dividends                              -              (355)                   -              (711)
                                              ----------------------------------------------------------------------------

Earnings applicable to common stockholders             $16,326          $20,099              $22,722           $15,609
                                              ============================================================================
Earnings per common share - basic:
  Before extraordinary item                              $0.40            $0.39                $0.55             $0.49
  Extraordinary item                                         -            (0.02)                   -             (0.20)
                                              ----------------------------------------------------------------------------
  Net income                                             $0.40            $0.37                $0.55             $0.29
                                              ============================================================================

Number of common shares used in the calculation         41,299           53,798               41,299            53,815

Earnings per common share - diluted:
  Before extraordinary item                              $0.40            $0.39                $0.55             $0.49
  Extraordinary item                                         -            (0.02)                   -             (0.20)
                                              ----------------------------------------------------------------------------
  Net income                                             $0.40            $0.37                $0.55             $0.29
                                              ============================================================================

Number of common shares used in calculation             41,299           54,095               41,299            54,080
</TABLE> 

See notes to condensed consolidated financial statements

                                       3
<PAGE>
 
                         HEARST-ARGYLE TELEVISION, INC.


                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (UNAUDITED)
                                        
<TABLE>
<CAPTION>
                                                                                    Six Months Ended
                                                                                          June 30,
                                                                    ----------------------------------------------
                                                                                  1997                   1998
                                                                          (Revised see Note 1)
<S>                                                                         <C>                     <C> 
Operating Activities                                                                    (In thousands)
Net income                                                                    $ 22,722                $16,320
Adjustments to reconcile net income to net cash provided by
operating activities:
   Extraordinary item, loss on early retirement of debt                              -                 17,191
   Depreciation                                                                  3,578                  6,364
   Amortization of intangible assets                                             4,612                 11,277
   Amortization of deferred financing costs                                          -                  1,236
   Amortization of program rights                                               19,052                 21,669
   Program payments                                                            (19,108)               (21,936)
   Deferred income taxes                                                          (773)                 2,154
   Fair value adjustments of interest rate protection agreements                     -                     76
   Provision for doubtful accounts                                                 522                      -
Changes in operating assets and liabilities, net                                (8,483)                11,880
                                                                    ----------------------------------------------
Net cash provided by operating activities                                       22,122                 66,231
                                                                    ----------------------------------------------

Investing Activities
Acquisition of stations                                                              -                (20,136)
Issuance of STC note receivable, net                                                 -                (51,055)
Acquisition costs                                                                    -                   (124)
Purchases of property, plant, and equipment:
   Special projects/buildings                                                        -                 (2,504)
   Digital                                                                           -                 (1,151)
   Maintenance                                                                  (1,683)                (4,299)
                                                                    ----------------------------------------------
Net cash used in investing activities                                           (1,683)               (79,269)
                                                                    ----------------------------------------------

Financing Activities
Issuance of Senior Notes                                                             -                200,000
Repayment of Senior Subordinated Notes                                               -               (116,621)
Proceeds from issuance of long-term debt                                             -                 29,000
Payment of long-term debt                                                            -                (85,000)
Financing costs and other                                                            -                 (4,374)
Series A Common stock:
   Issuances                                                                         -                    229
   Repurchases                                                                       -                 (8,306)
Dividends paid on preferred stock                                                    -                   (711)
Due to Hearst                                                                  (18,271)                     -
                                                                    ----------------------------------------------
Net cash (used in) provided by financing activities                            (18,271)                14,217
                                                                    ----------------------------------------------
Increase in cash and cash equivalents                                            2,168                  1,179
Cash and cash equivalents at beginning of period                                 2,882                 12,759
                                                                    ----------------------------------------------
Cash and cash equivalents at end of period                                      $5,050                $13,938
                                                                    ==============================================

Businesses acquired in purchase transaction:
   Fair market value of assets acquired                                              -                $20,632
   Liabilities assumed                                                               -                    496
                                                                    ----------------------------------------------
Net cash paid for acquisitions                                                       -                $20,136
                                                                    ----------------------------------------------

</TABLE> 
See notes to condensed consolidated financial statements.

                                       4
<PAGE>
 
                         HEARST-ARGYLE TELEVISION, INC.

                                        
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                                  (UNAUDITED)
                                        
                                 JUNE 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 1.1 million shares of the Company's Series
A Common Stock (See Note 5), increasing its ownership to approximately 79.1% as
of June 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 estimated 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
financial statements prior to September 1, 1997 has been revised to reflect the
financial statements of the Hearst Broadcast Group.  In addition, the divisional
equity of the Hearst Broadcast Group, which includes the amounts due to Hearst
and affiliates, has been reclassified retroactively to reflect the par value of
the approximately 41.3 million shares received by Hearst in the Hearst
Transaction in the accompanying financial statements for periods ending prior to
September 1, 1997.  See Note 2.

REVISED PRESENTATION OF CONDENSED CONSOLIDATED FINANCIAL STATEMENT

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):



                                          For the three         For the six
                                          months ended          months ended
                                            June 30,                June 30,
                                             1997                   1997
                                        --------------------------------------
Net income (loss):
 As previously reported (Argyle)        $      (2,093)       $        (8,295)
                                        ======================================

 As revised (Hearst Broadcast Group)    $      16,326        $        22,722
                                        ======================================

Earnings (loss) per Common
share - Diluted

 As previously reported (Argyle)        $       (0.22)       $         (0.79)
                                        ======================================
 As revised (Hearst Broadcast Group)    $        0.40        $          0.55
                                        ======================================


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 (consisting only of normal recurring accruals) 
considered necessary for a fair presentation have been included. Operating
results for the three and six-month periods ended June 30, 1997 and 1998 are not
necessarily indicative of the results that may be expected for a full year.

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 preliminarily determined fair market
values. 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 final asset and liability fair values may differ
from those set forth in the accompanying condensed consolidated balance sheets
at December 31, 1997 and June 30, 1998; however, the changes, if any, are not
expected to have a material effect on the condensed consolidated financial
statements of the Company.  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.

Effective June 1, 1998, the Company exchanged its WDTN and WNAC stations and 
cash of approximately $20 million, net of a working capital adjustment, 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 (the "STC Swap").

                                       5
<PAGE>
 
                         HEARST-ARGYLE TELEVISION, INC.
                                        

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



2.  ACQUISITIONS (CONTINUED)

Giving effect to the Hearst Transaction and the STC Swap discussed above,
unaudited pro forma results of operations reflect the acquisitions and
financings (See Note 3) as having occurred as of January 1, 1997, are as
follows:

<TABLE> 
<CAPTION> 
                                                                                             Pro Forma
                                                                                     Six Months Ended June 30,
                                                                                      1997                 1998
                                                                              --------------------- -------------------
                                                                               (In thousands, except per share data)
<S>                                                                                <C>                   <C> 
Total revenues                                                                      $185,271             $197,016
Net income                                                                           $23,928              $26,997
Earnings from continuing operations applicable to common stockholders                $23,217              $26,286
Earnings per common share    -   basic                                                 $0.43                $0.49
                                                                                    ========             ========
                           -   diluted                                                 $0.43                $0.49
                                                                                    ========             ========
Pro forma number of shares used in calculations      -  basic                         53,815               53,815
                                                                                    ========             ========
                                                     -  diluted                       54,080               54,080
                                                                                    ========             ========
</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 be achieved had each of the stations been acquired
at the beginning of the periods presented, nor are they indicative of future
results of operations.

3.   Long-Term Debt

     Long-term debt consists of the following:
<TABLE> 
<CAPTION> 
                                                                           December 31,          June 30,
                                                                               1997                1998
                                                                       ----------------------------------------
                                                                                   (In thousands)
<S>                                                                             <C>                <C> 
         Credit Facility dated August 29, 1997                                    $  85,000          $  29,000
         Senior Notes                                                               300,000            500,000
         Senior Subordinated Notes                                                  105,000              2,596
                                                                       ----------------------------------------
                                                                                   $490,000           $531,596
                                                                       ========================================
</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 in the accompanying condensed
consolidated statement of operations for the six months ended June 30, 1998.

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).

                                        6
<PAGE>
 
                         HEARST-ARGYLE TELEVISION, INC.

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



3.  LONG-TERM DEBT (CONTINUED)

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 June 30, 1998 follows:


<TABLE>
<CAPTION>
                                                       AVERAGE          AVERAGE       ESTIMATED FAIR
                                 NOTIONAL AMOUNT    RECEIVE RATE       PAY RATE            VALUE
                              ------------------------------------------------------------------------
Interest rate swap agreements:
<S>                                 <C>                 <C>             <C>             <C> 
     Fixed rate agreement            $20,000,000         LIBOR            7.01%          $(255,973)
     Fixed rate agreement            $15,000,000         LIBOR            6.98%          $(188,473)
</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 exposures 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 months ended June 30, 1998, the Company spent approximately $8.3
million to repurchase approximately 238,000 shares of Series A Common Stock, at
an average price of $34.96. 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)
                                        
                                 JUNE 30, 1998
                                        


6.   RELATED PARTY TRANSACTIONS

Prior to September 1, 1997, Hearst provided certain management services to the 
Company.  Such services include data processing, legal, tax, treasury, internal 
audit, risk management, and other support services.  For the three and six 
months ended June 30, 1997, the Company was allocated expenses of approximately 
$499,000 and $998,000, respectively, related to these services.  In addition, 
Hearst allocated interest expense to the Company which was based on the average 
balance of divisional equity at an interest rate of 8% per annum.  Allocated 
expenses are based on the Hearst's estimate of expenses related to the services 
provided to the Company in relation to those provided to other divisions or 
subsidiaries of Hearst.  Management believes that these allocations were made on
reasonable basis.  However, the allocations are not necessarily indicative of 
the level of expenses that might have been incurred had the Company contracted 
directly with third parties.  In addition, certain costs (principally salaries,
fringe benefits and incentive compensation) were incurred by the Company, paid 
by Hearst and charged to the Company for the three and six months ended June 30,
1997 in the amounts of approximately $2.0 million and $4.0 million.

The Company recorded revenues of approximately $946,000 and $1.3 million,
respectively during the three and six-months ended June 30, 1998, 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 $1.1 million,
respectively, 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
six-months ended June 30, 1998.  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 a regulatory and shareholder
approval and certain other conditions, to close during early 1999.

                                       8
<PAGE>
 
The Company anticipates that its primary sources of cash, those being, current
cash balances, operating cash flow and amounts available under the Credit
Facility, will be sufficient to finance the operating and working capital
requirements of its stations, the Company's debt service requirements and
anticipated capital expenditures for the Company for both the next 12 months and
the foreseeable future thereafter.

IMPACT OF INFLATION

The impact of inflation on the Company's operations has not been significant to
date.  There can be no assurance, however, that a high rate of inflation in the
future would not have an adverse impact on the Company's operating results.

FORWARD-LOOKING STATEMENTS

This report contains certain forward-looking statements concerning the Company's
operations, economic performance and financial condition.  These statements are
based upon a number of assumptions and estimates, which are inherently subject
to uncertainties and contingencies, many of which are beyond the control of the
Company, and reflect future business decisions, which are subject to change.
Some of the assumptions may not materialize and unanticipated events may occur
which can affect the Company's results.

YEAR 2000

The Company has evaluated the potential impact of the situation commonly
referred to as the "Year 2000 problem." The Year 2000 problem, which is common
to most corporations, concerns the inability of information systems, primarily
computer software programs, to properly recognize and process date sensitive
information related to the year 2000. Preliminary assessment indicates that
solutions will involve a mix of modifying existing systems, replacing obsolete
systems and confirming vendor compliance. The Company currently does not
anticipate any significant incremental capital expenditures associated with the
Year 2000 problem. However, Year 2000 assessments will continue and capital
expenditure estimates could change. The Company has initiated formal
communications with all of its significant suppliers and large customers to
determine the extent to which the Company's systems are vulnerable to those
third parties' failure to remediate their own Year 2000 issue. There can be no
guarantee that the systems of other companies on which the Company's systems
rely will be converted timely and would not have an adverse effect on the
Company's systems. The Company will utilize both internal and external resources
to upgrade or replace, and test the software for Year 2000 modifications.

NEW ACCOUNTING PRONOUNCEMENTS

In June 1997, the Financial Accounting Standards Board issued SFAS No. 131,
"Disclosures about Segments of an Enterprise and Related Information" ("SFAS
131").  SFAS 131 establishes standards for reporting certain financial and
descriptive information for reportable segments on the same basis that is used
internally for evaluating segment performance and the allocation of resources to
segments.  This statement is effective for fiscal years beginning after December
15, 1997.  In February 1998, the Financial Accounting Standards Board issued
SFAS No. 132, "Employers' Disclosures About Pensions and Other Postretirement
Benefits", which becomes effective for the Company's 1998 consolidated financial
statements.  SFAS No. 132 standardizes the disclosure requirements for pensions
and other postretirement benefits to the extent practicable, requires additional
information on changes in the benefit obligations and fair values of plan assets
that will facilitate financial analysis, and eliminates certain previously
required disclosures.  In June 1998, the Financial Accounting Standards Board
issued SFAS No. 133, "Accounting for Derivative Instruments and Hedging
Activities" ("SFAS 133"), which becomes effective for the Company's 2000
consolidated financial statements.  SFAS 133 requires that derivative
instruments be measured at fair value and recognized as assets or liabilities in
a company's statement of financial position.  The adoption of these statements
will not have a material effect on the Company's consolidated financial
statements.

In April 1998, the American Institute of Certified Public Accountants ("AICPA")
issued Statement of Position ("SOP") No. 98-5, Reporting on the Costs of Start-
Up Activities ("SOP 98-5"). SOP 98-5 requires that entities expense start-up
costs and organization costs as they are incurred. In March 1998, the AICPA
issued SOP No. 98-1, Accounting for the costs of computer software developed or
obtained for internal use ("SOP 98-1"). SOP 98-1 was issued to remedy the
diversity in the approaches to accounting for internaluse software by providing
guidance on expensing versus capitalization of costs, accounting for the costs
incurred in the upgrading and amortization of capitalized software costs. These
statements are effective for fiscal years beginning after December 15, 1998. The
Company's accounting practices are in compliance with these Statements.

                                      9

<PAGE>
 
PART II        OTHER INFORMATION


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)      Exhibit No.

         27      Financial Data Schedule

                                       10
<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.


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


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

                                       11