(AP) Hollinger International Inc., publisher of the Chicago Sun-Times, Wednesday said it will cut its quarterly dividend by more than half, and its Canadian parent company agreed to further reduce its management fee.
The moves are part of the Chicago-based newspaper company’s debt-reduction plan and should result in annual cost savings of about $30 million.
The company cut its dividend to 5 cents from 11 cents, payable Oct. 15, to shareholders of record Oct. 1.
Hollinger International owns more than 150 newspapers in the United States, Britain, and Israel, including London’s Daily Telegraph and Jerusalem Post. It is controlled by Toronto-based Hollinger Inc., the holding company of Conrad Black.
Hollinger Inc. agreed to lower its management fee to $22 million from $24 million. The fee had already been reduced from about $37 million in 2000.
Hollinger International has eliminated nearly 75% of its debt since it began a debt-reduction program two years ago.
It posted a second-quarter loss from continuing operations of $2.3 million, or 3 cents a share, on revenue of $242.9 million.
The company’s New York Stock Exchange-listed shares were at $10 early Wednesday afternoon, down 10 cents, or 1%. The stock hit a 52-week high of $13.75 on April 1 and a 52-week low of $9.08 on Nov. 6.