By: E&P Staff
Sun-Times Media Group Inc. Wednesday warned that its third-quarter operating results will be “substantially below the performance” for the same period in 2005.
“The company expects that the weakness in the Chicago newspaper advertising market that the company experienced during the first two quarters of 2006 continued and accelerated through the third quarter,” the Chicago-based chain said in a statement.
In the second quarter of 2006, Sun-Times Media Group reported a decline in advertising of about 7.5%. The third quarter “will reflect even greater declines in the Chicago market,” the company said.
Sun-Times Media Group, which publishes the Chicago Sun-Times and about 100 daily and community papers in the Chicago market, said it is considering a range of options to address the performance and cash flow shortfall, including a review of its dividend policy.
Sun-Times Media Group said it expects to report its third-quarter results during the week of November 6.