By: Mark Fitzgerald Milwaukee-based Journal Communications Inc. Tuesday reported its second-quarter earnings plunged 56% on a continued slide in advertising revenue at its daily newspaper and broadcast properties.
Excluding a $19 million impairment charge related to its broadcast licenses and other special items, Journal Communications recorded operating earnings of $7.2 million for the quarter, compared to year-ago operating earnings of $16.6 million.
Total revenue in the quarter fell 21.9% to $109.4 million.
At the company's only daily, the Milwaukee Journal Sentinel, ad revenue plummeted 33.2% on weakness across every category -- especially classified, which fell 52.6%.
Journal Communications Chairman and CEO Steven J. Smith said the recession continues to hit hard at the automotive, real estate and retail advertising categories. Automotive was down 56% at the Journal Sentinel, and 49% at its television and radio stations.
"We have yet to see signs of a sustained recovery," he said.
Retail advertising fell 20.9% at the daily, while national was down 20.6%.
Interactive advertising revenue at the daily newspaper was down 33.5% to $2.5 million. Journal Communications blamed the slide on declines in automotive and employment online classified advertising.
Overall publishing revenue fell 20.1% to $49.4 million while operating earnings slid 42.2% to $3.3 million.
Journal Communications cut its newsprint expense in the quarter by 34.9% to $6.3 million.
Revenue from its community newspapers and shoppers dipped 6.6% to $9.5 million, mostly on declines in automotive and real estate retail and classified advertising revenue. Operating earnings from community newspapers and shoppers were $900,000, compared with $300,000 in the year-ago period.
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