By: (AP) Newspaper publisher and broadcaster Media General Inc. said Tuesday that its second-quarter profit more than doubled as the company posted a hefty gain on the sale of its interest in the Denver Post.
The company said its quarterly income grew to $38.4 million, or $1.61 per share, in the three months ended June 26 from $18.5 million, or 78 cents per share, a year ago. Excluding the gain from the Denver Post sale, the company reported earnings of $19 million, or 80 cents per share.
Revenue rose 4 percent to $233.7 million from $224.9 million last year as newspaper advertising revenue grew 5.7 percent.
Analysts surveyed by Thomson Financial expected earnings per share of 79 cents on revenue of $234.2 million.
Media General shares fell $1.15, or 1.7 percent, to $65.60 in morning trading on the New York Stock Exchange.
Revenue from The Tampa Tribune was up 7.2 percent on the quarter, making up more than half of the publishing division's overall revenue growth of 4.2 percent. Classified ads led all categories with a revenue increase of 7.6 percent, driven by strong employment advertising.
The company expects revenue from its publishing division to rise 5 percent to 6 percent in the third quarter.
Broadcast revenues increased 2.1 percent, but profit in the division fell due to the absence of political ad revenue and increased expenses for new business development in the current year.
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