Journal Register Co. Down in Q1

By: E&P Staff

Journal Register Co. reported that total revenue for continuing operations in Q1 fell 5.1% to $114.1 million. Advertising revenue dropped 6.9% to $86.4 million.

In a statement, Chairman and CEO Robert Jelenic, said ?Our first quarter reflects progress in our plan to operate our business more profitability even as we remain challenged by a difficult print advertising environment, particularly in our Michigan cluster where ongoing issues affecting the domestic auto industry have dramatically impacted our real estate and employment advertising revenue.

?We were encouraged by the overall advertising revenue trend in period three, which was the best period of the quarter, due mainly to positive performance at our flagship newspaper, the New Haven Register, especially in retail advertising revenue.?

The company said that online revenue continues to make strong gains. In Q1 that revenue increased 25.8% to $4 million.

Retail advertising revenue decreased 4.1%.

Classified advertising revenue dropped 7.4%. Within the category, employment slipped 2%, real estate declined 9.8%, and auto plummeted 20.7%.

National advertising, which represents 4% of the company?s total advertising revenue, plunged 29.4%.

Circulation revenue was down slightly 0.7% to $22.9 million.

The company?s cash operating expenses fell 2.9%. Newsprint expense declined 4% reflecting an increase in unit cost of about 3% and a decrease in consumption of about 6%.

Journal Register reduced its debt to $652.7 million from $726.3 million as of Dec. 31, 2006.

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