Tribune Overall Earnings Up, But Newspapers Down Amid Big Circ Decline

By: (AP) Media company Tribune Co., which owns the Chicago Tribune and Los Angeles Times newspapers as well as numerous television stations, said Thursday that second-quarter earnings more than doubled from a year ago despite a 2.3 percent decline in revenue. But revenue at Tribune's publishing unit, which includes 11 daily newspapers, slipped 1 percent to $1 billion.

Net income rose to $231.3 million, or 73 cents per share, after preferred dividend payments for the three months ended June 26 compared with $94.3 million, or 29 cents per share, a year ago.

Excluding a gain of 13 cents a share, primarily from adjusting the book value of derivatives holdings, profits topped analysts' expectations of 58 cents per share, according to a Thomson Financial survey.

Revenue fell to $1.46 billion from $1.5 billion last year, due to sluggish TV and newspaper advertising sales and a drop in newspaper circulation. Analysts expected sales of $1.47 billion.

"Second-quarter results reflect our continued focus on cost controls in the face of a weak advertising environment in the nation's largest markets," said Dennis J. FitzSimons, Tribune chairman, president and chief executive officer.

Newspaper advertising revenue grew 1 percent for the quarter, hurt by lower revenue from Newsday, which had to drop ad rates in September after a circulation scandal.

Tribune circulation revenue declined 9 percent to $149 million from $165 million, due to volume drops at each of its newspapers, the company said. Classified ad revenue grew 6 percent, helped by sharp increases in help-wanted and real estate ads.

Revenue from Tribune's broadcasting and entertainment business fell 6 percent, from $450 million a year earlier to $423 million. Television revenue was down 9 percent from a year ago, from $368 million to $335 million, due to a "continuing uneven advertising environment, particularly in major markets."

The company also blamed the drop on impact from the rollout of "Local People Meters" from Nielsen Media Research Inc., which Tribune and other broadcasters say undercount minority groups.

The Chicago-based company also owns 26 television stations and the Chicago Cubs.