By: E&P Staff A.H. Belo Corp., the newspaper pure play spun off from Dallas-based Belo Corp., reported its first quarterly result was a loss of $8.7 million, or 43 cents a share, on revenues that tumbled 8.8% to $160.2 million.
Advertising revenue, including print and Internet revenue, fell 12% in the quarter compared to a year ago.
The chain was particularly hard hit at its major California property, where ad revenue for The Press-Enterprise in Riverside plummeted 26%.
A.H. Belo said its newspaper margin -- measured by EBITDA (earnings before interest, taxes, depreciation, and amortization) -- fell by 5 percentage points to 9%.
Internet revenue of $12 million accounted for 7.5% of A.H. Belo's total revenues.
Circulation revenue was up 5.4% in the quarter, on a 12% rise at the flagship Dallas Morning News.
Total newspaper expense decreased by $5.3 million or 3.5% in the quarter, including a $2.9 million drop in newsprint expense, most of which came from a decrease in usage.
In its general financial guidance for the remainder of the year, A.H. Belo said it expects to see a continuing decline in ad revenue for 2008, with the Press-Enterprise seeing the biggest reductions.
"A. H. Belo is navigating through a challenging operating environment, but I am confident about the quality of our markets long-term, the strengths of AHC's brands, and our ability to continue to transform AHC in an Internet-centric media world," Chairman, President, and CEO Robert W. Decherd said in a statement.
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