Journal Communications Slumps in Q1
Broadcasting Helps to Drive Down Milwaukee-Based TV, Radio, Newspaper and Printing-Services Company
By Robert Marich -- Broadcasting & Cable, 4/22/2008 8:16:00 AM
Media conglomerate Journal Communications reported Tuesday that first-quarter earnings from continuing operations dived 23.7% to $6.3 million, as broadcasting was particularly weak.
The quarterly net-income results were skewed by a $65.1 million one-time gain a year ago, which mean that net income dropped to $6.7 million from $73.3 million one year ago.
First-quarter revenue at the Milwaukee-based TV, radio, newspaper and printing-services company decreased 6.2% to $134.3 million.
In its broadcasting segment, TV stations suffered a 40.9% drop in operating earnings to $3.6 million that Journal attributed to “declines in revenue at our Las Vegas and Fort Myers/Naples [Fla.] stations, increased costs for programming and production, depreciation related to our investment in high-definition platforms and bad debt expense.” Revenue at TV stations slipped 3.4% to $32.4 million, although there was an infusion of political advertising.
“As revenue remains challenged, we are maintaining strict cost control and seeking operating efficiencies wherever possible,” Journal chairman and CEO Steven J. Smith said in a statement. “We continue to believe that revenues in the second half of 2008 will benefit from strong advertising demand for Summer Olympics, as well as substantial political and issue advertising.”
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