Belo issued a warning Monday about reduced third quarter revenues due to advertising losses and news coverage costs spurred by the recent terrorist attacks, and reported a drop in revenue for August.
Belo projected third quarter earnings in the range of one to three cents per share, compared to analysts' expectations of four cents a share.
"Belo incurred temporary increases in news-gathering costs," said Robert Dercherd, Belo's chairman, president and CEO, in a prepared statement. "Accordingly, the company's revedneu and operating cash flow in the third quarter will be less than previously expected." Dercherd also cited "significant reductions" in ad revenues related to round-the-clock news coverage on its 17 TV stations.
The Dallas-based company reported a 10.2% drop in TV revenues for August, to $48.5 million, compared to 54 million in August 2000. - Richard Tedesco