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

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.


Journal Closes on KWBA

Journal Communications completes purchase of The CW affiliate KWBA Tucson, Ariz., from Tucson Communications, Cascade Broadcasting Group.