By: E&P Staff The Sun-Times Media Group (STMG) reported this afternoon a net loss of $35.8 million or 44 cents per share for Q1 compared with a loss of $4.8 million or 6 cents per share in Q1 2007.
Advertising revenue fell 12.6% to $61.1 million. The classified ad revenue category lost $3.5 million during Q1, while retail lost $4.1 million and national lost $1.3 million. Circulation revenue dropped 8.4% to $18.3 million. The overall loss also includes $5.5 million of indemnification, investigation, and litigation costs.
However, the publisher of the Chicago Sun-Times said his paper is on track to meet its cost reduction goal of $50 million this year.
Cyrus F. Freidheim Jr., CEO of STMG, said in a statement, "Secular changes combined with a broad-based economic downturn made for a powerful one-two punch against nearly every newspaper company during the quarter."
Total operating revenue in Q1 was $81 million compared to $91.7 million for the same period a year ago.
STMG announced on Wednesday it would not appeal the New York Stock Exchange's decision to
de-list its shares. Additionally, the company retained Lazard Freres & Co. to possibility put the company up for sale.
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