No Fireworks for Media General as July Newspaper Revenue Falls

By: Mark Fitzgerald Media General Inc. released July results that suggest the sinking Florida economy is not yet through whacking away at The Tampa Tribune parent's financials.

Richmond, Va.-based Media General reported its publishing revenue fell 18.9% in July compared to a year ago -- led by a 30.8% plunge in the Florida market, where it also publishes dailies in three communities smaller than Tampa. Excluding Florida, publishing division total revenue for the month was down 13.4%.

Revenue was down by 17.2% among its Virginia papers, 7.5% in North Carolina; and 6.5% in its Alabama markets. As it did for June, Media General reported a revenue increase, this time of 2.1%, for its South Carolina properties, driven by results from its new weekly in the greater Florence/Myrtle Beach market.

Newspaper classified advertising revenue plunged 32.5%, led by Tampa and Richmond, but with decreases in all markets, Media General said.

The newspaper industry's three big losing classified categories these days were also down big for Media General: real estate falling 47.2%; employment, 45.2%; and automotive, 42.7%.

Retail ad revenue was down 11.7%, while national shaved $810,000 off last year's results, a decline of 25%.

Circulation revenue was down 3.3%, mostly on declining circ offset by some price increases. Media General noted, though, that The Tampa Tribune grew net-paid circ weekdays and on Sundays.

Media General's Interactive Media Division reported a revenue increase of 5.7%, pushed by higher local ads -- which soared 47% -- and sales from DealTaker.com, which it acquired last March.

The increase suggested slowing online growth. In July 2007, Media General reported a 37.4% year-over-year increase in Interactive division revenue. Online classified revenue fell 9% in July 2008 compared to the year-ago month.

Media General's total revenue fell 13.8%, with a decline in broadcast ads only partially offset by increased election year political ads.

Less than an hour after the opening bell, Media General shares (NYSE: MEG) were trading at $11.87, down 37 cents, or 3.02%. Media General has traded in a 52-week range of $10.23 to $31.04.