By: E&P Staff The Tribune Co. reported that Q1 earnings from continuing operations soared to $1.82 billion compared with $11 million from the same period a year ago. The favorable upswing was due to the change of the company's tax status at the beginning of the year to a subchapter S corporation.
Tribune said it lost about $1 million from continuing operations before income taxes to $30 million compared with $31 million in Q1 2007.
Its publishing division experienced wide losses. Operating revenue fell 11% to $823 million.
Advertising revenue at the publishing division plunged 15% or $110 million in Q1. All major categories were down while Interactive revenue at the company was flat.
Retail advertising revenue dropped 8% due to a decline in the hardware/home improvement stores, furniture, specialty merchandise, and department stores categories. Preprint revenue was down 8%.
National advertising revenue for the quarter declined 10% due to losses in the telecom and auto categories.
Classified advertising revenue plummeted 27% with real estate down 41%, help wanted down 33%, and auto down 8%.
The company said interactive revenue was affected by the weakness in the classified category, which offset gains in retail and national.
Circulation revenue fell 3%.
Tribune Chairman and CEO Sam Zell said in a statement, "As we stated on our call in April, print ad revenues continue to be challenged by the weak economy's impact on real estate and classified advertising."
The company is holding a conference call to discuss the results further on May 29.
Comments
No comments on this item Please log in to comment by clicking here