Revenue Slips at Journal
Journal Communications saw a $17.1 million, or 5.6%, net loss despite growth in interactive and slight gain in TV revenue
By Michael Malone -- Broadcasting & Cable, 10/23/2008 11:11:00 AM
Journal Communications revenue for the third quarter was $136.3 million, down 5.6% compared to the same quarter last year. The net loss was $17.1 million.
Journal’s loss from continuing operations included a $23.5 million after-tax non-cash impairment charge for four television and 13 radio broadcast licenses and a $2.4 million after-tax charge for the company’s workforce reductions. Excluding these charges, earnings from continuing operations were $8.8 million compared to $11.8 million, a decrease of 25.4%.
"A continuing tough economy resulting in a difficult advertising environment, moderated somewhat by political and Olympic spending, impacted our revenues once again in the third quarter," said Chairman/CEO Steven J. Smith. "Television revenue grew 3% in the quarter while radio revenue was off by 3%. Publishing revenue was down 8.8%. Total company interactive revenue was up almost 16% in the quarter, continuing its growth trajectory.
Smith said Journal would continue to reduce costs. Headcount on the broadcasting side is down 10%.
Broadcasting revenue was essentially flat for the quarter at $54 million. Total political revenue for television was $3.4 million, and Journal announced a broadcasting operating loss of $29.1 million, including a $38.8 million pre-tax non-cash impairment charge for the four TV and 13 radio licenses.
Station revenue was up 3.4% for the quarter, compared to the same quarter a year ago, to $32.3 million.
Journal Communications anticipates that television revenues will be down in the “mid single digit” range in Q4, compared to the prior year period.
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