Belo Earnings Rise 43%

By: (AP) Belo Corp., owner of The Dallas Morning News, said Wednesday that its first-quarter profit rose 43% as newspaper help-wanted ads and local television advertising strengthened.

Belo said it earned $22.3 million, or 19 cents per share in the quarter ended March 31, compared to $15.6 million, or 14 cents per share, a year earlier.

Analysts surveyed by Thomson First Call had expected Belo to earn 17 cents per share.

Belo said it would have earned 17 cents per share in the recent quarter had it recorded stock options as an expense, compared to 11 cents per share in early 2003.

Revenue rose to $351 million from $322 million a year earlier. Sales from Belo's television group gained 11% and newspaper revenue rose nearly 7%.

After the report, Fitch Ratings raised its outlook on Belo from "stable" to "positive," citing the improved advertising market and the company's tight cost controls.

Fitch, however, didn't lift its BBB-minus rating -- one notch above so-called junk status -- on Belo's debt. About $1.2 billion of borrowing is affected by the rating. A downgrade would likely make future borrowing more difficult and expensive.

Robert W. Decherd, Belo chairman, president, and chief executive, said revenue grew faster than expected in the first quarter, particularly in March, which he indicated were signs of an economic and advertising recovery.

Newspaper employment and auto advertising picked up, and so did political advertising in Missouri, Arizona, Washington and Oregon, the company said.

For the second quarter, Belo said television spot revenues and newspaper sales should rise by mid-to-high single digits, with TV benefiting from political ads.

Belo owns 19 television stations and four daily newspapers around the country. Belo shares were down 25 cents at $28.58 in midday trading on the New York Stock Exchange.