Publishers Look for Growth in 2004

By: Seth Sutel, AP Business Writer (AP) Newspaper publishers gave updated forecasts for advertising revenues and other aspects of their businesses Tuesday at an annual conference for analysts and investors sponsored by the Credit Suisse First Boston investment bank.

The presentations will continue on Wednesday. Here are some highlights from Tuesday's presentations:

Journal Register Co.

Chief executive Robert Jelenic said the Trenton, N.J.-based publisher was looking at new product launches and acquisitions for growth.

Jelenic pointed to a new weekly classified automotive feature section launched this year in the New Haven (Conn.) Register, which was subsequently added to the company's newspapers in the Philadelphia and Cleveland regions.

Jelenic also said the company was looking to smaller, "tuck-in" acquisitions as a way to grow, pointing to the recent purchase of The North Attleborough (Mass.) Free Press.

Looking forward, Jelenic said the company expects to report advertising growth of 4-5% next year on a comparable basis with this year, and an increase of about 1% in circulation revenues.

Lee Enterprises Inc.

Chief executive Mary Junck said the company was "cautiously optimistic" about the prospects for growth in advertising revenues next year.

"Based on what we've seen ... it looks like things are a little bit better," Junck said. "We liked what we saw in October and November."

Earlier Tuesday, the Davenport, Iowa-based publisher reported that its total advertising revenue increased 7.5% in November as a result of improving ad sales and an extra Sunday falling in November this year compared with the same month a year ago.

Junck also said the company has completed the integration of Howard Publications, a publisher of 16 newspapers that Lee acquired in 2002 for $754 million. Junck said the deal has been "highly successful" and that the company has delivered on its original projections.

The McClatchy Co.

Gary Pruitt, chief executive of the Sacramento, Calif.-based publisher, said he forecast a "steady recovery" of advertising revenues in 2004, with growth in the mid-single-digits.

Pruitt said the company was on track to meet its fourth-quarter earnings guidance of between 87 and 90 cents per share, but he said McClatchy would also record a favorable tax adjustment in the period that would lift the net earnings figure by 5 cents per share.

Pat Talamantes, the chief financial officer, noted that the company was not yet ready to issue specific forecasts for full-year earnings for 2004. He noted that the company would face expense increases in three areas next year: newsprint, retirement costs and health care.

Pulitzer Inc.

Alan Silverglat, senior vice president of finance for the St. Louis-based publisher, said the company expects advertising and total revenue growth in the mid-single-digit range in 2004, assuming improved retail advertising but only moderate growth in help-wanted advertising.

Silverglat said the company expects its base earnings in 2004 to be at least $2.10 per share, or higher if help-wanted advertising were to grow more than the company has been anticipating.

Silverglat said the company's performance in the first part of the quarter has given Pulitzer confidence it will meet its prior guidance of 2003 base earnings per share of at least $1.95.