By: Jay DeFoore E.W. Scripps Co. on Monday said it was expecting its online businesses to account for nearly one quarter of the company's year-over-year increase in total revenues projected for 2006.
Much of that will be driven by Shopzilla, the company's online comparison shopping service, which is expected to generate $50 million to $55 million in segment profit in 2006.
By comparison, the company?s JOA newspapers in Denver, Cincinnati, and Albuquerque are expected to contribute $18 million to $20 million to segment profit.
The company's senior management team unveiled the numbers during investor conferences that are being held this week in New York City.
Despite the news, Scripps said it was lowering its fourth-quarter outlook due to earnings losses at its Shop At Home unit and by the effect of Hurricane Wilma on its Florida operations.
Fourth-quarter earnings are expected to be 48 to 50 cents per share, down from an earlier forecast of 52 to 56 cents per share.
In the company's newspaper segment, revenue is expected to grow 4% to 6%, but cash expenses, mainly in the form of higher employee benefits costs and the expense of stock options, are expected on increase 7% to 9% over the next year.
The overall number of newspaper employees is expected to be flat, but
the company will continue to shift resources to advertising sales and Internet-based businesses, Scripps said in a
press release.
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