Morris Communications Reports Net Loss in Q2

By: Jennifer Saba Morris Communications has reported a net loss of $1.3 million in Q2, compared to a net profit of $2 million during the same period last year. Net operating revenue in Q2 skidded 22% to $63.5 million on a 30% drop in advertising revenue, according to a Securities and Exchange Commission filing.

Total advertising revenue for the quarter was $45.8 million. (The company notes that this quarter included on extra Sunday and a shift of Easter to April.) Retail advertising revenue was down 24.2%. National advertising revenue dropped 38.3%. Classified revenue fell 23.2%.

Within the classified category, auto declined 15.7%, while real estate and employment decreased 23.1% and 48.9%, respectively.

Online advertising revenue plunged 25.7% to $6.5 million.

Run-of-press advertising fell 34.2% to $26.6 million, while insert advertising revenue slipped 16.4% to $11 million.

Morris reported that advertising revenue at The Florida Times-Union in Jacksonville was down 34.2% to $6.5 million. At The Augusta (Ga.) Chronicle, ad revenue fell 29% to $2.2 million.

Circulation revenue for Q2 grew 5.7% to $15.6 million.

Total operating expenses were down 20.1% to $58.8 million.

On Aug. 1, Morris said it received another forbearance agreement from its creditors. The company now has until Aug. 14 to make good on a $9.7 million interest payment that was due last Feb. 1.


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