A.H. Belo Corp. today reported net income of $4.6 million, or $0.20 per diluted share, for the third quarter of 2010 compared to a net loss of $5.8 million, or $0.28 per diluted share, in the third quarter of 2009, a company release said.
Earnings before interest, taxes, depreciation and amortization (“EBITDA”) was $14.2 million, an increase of $20 million compared to the third quarter of 2009. Third quarter 2010 EBITDA includes pension expense of $1.6 million; a $1.1 million bonus accrual; a $1.4 million gain on two real estate transactions in Dallas; a $1.2 million reversal of an accrual for workers’ compensation insurance; and $1.1 million of insurance proceeds.
When pension expense is added to EBITDA (“Adjusted EBITDA”) in both periods, the resulting Adjusted EBITDA in the third quarter of 2010 was $15.8 million, an increase of $21.6 million compared to the third quarter of 2009.
“The Board and Management Committee are very pleased with the progress reflected in A. H. Belo’s third quarter performance," chairman, president and chief executive officer Robert W. Decherd said in the release. "Our corporate and operating unit teams have worked intensely for the past two years to reach this relative stability in an industry environment that continues to change at a rapid pace.
"Third quarter total revenue decreased 6.1 percent compared to 2009 and was only 100 basis points below the company’s 2010 Financial Plan for the third quarter.
"Expense containment and cost reductions remain top priorities across the entire organization.
"As of Sept. 30, the company had approximately $81.3 million of cash and cash equivalents, no borrowings outstanding under its bank credit facility, and remained in compliance with bank covenants.
"The addition of $21.3 million of cash and cash equivalents during the third quarter further strengthens the company’s ability to maintain and enhance the quality of its local content and make decisions in the long-term interests of the company, its shareholders and its employees.”
Showing posts with label Newspaper Revenue. Show all posts
Showing posts with label Newspaper Revenue. Show all posts
Wednesday, November 3, 2010
Wednesday, March 24, 2010
Judge Approves $20 Million Sale of Daytona Beach News-Journal
A federal judge today approved the $20 million sale of the Daytona Beach (Fla.) News-Journal.
Ludmilla Lelis of the Orlando Sentinel reports:
There was no word concerning possible layoffs with the new ownership.
Ludmilla Lelis of the Orlando Sentinel reports:
U.S. District Court Judge John Antoon II said he had little choice but to approve the pending offer from Halifax Media Acquisition LLC, not knowing whether the newspaper could fetch a better price if the sale were delayed.
"I'd like to wait and hope that things will change but I'm in no position to speculate," said Antoon in court today.
The pending sale must be closed by March 31, according to the bank's lending requirements. The new owner of the newspaper is a company which includes Michael Redding, CEO of HarborPoint Media, owner of four publications, including The Daily Commercial in Leesburg; and members of a ... Little Rock, Ark., private-equity firm under financier Warren Stephens.
The newspaper sale would close out a lengthy legal battle between the paper and its minority shareholder, Cox Enterprises of Atlanta. In the end, the Davidson family lost control of the newspaper which it had owned and operated for decades.
There was no word concerning possible layoffs with the new ownership.
Tuesday, February 23, 2010
Scripps Reports 18 Percent Decrease in 4Q Consolidated Revenues in 2009
The E.W. Scripps Co. reported operating today that consolidated revenues were $217 million, an 18 percent decrease from $265 million in the fourth quarter of 2008. Compared with the third quarter, the year-over-year rate of revenue decline in the fourth quarter improved for both the television and newspaper divisions.
Expenses, excluding restructuring costs, were reduced 17 percent to $185 million from $223 million in the year-ago period.
Income from continuing operations in the fourth quarter of 2009, net of tax, was $14.1 million, or 22 cents per share, compared with a net loss from continuing operations of $3.6 million, or 6 cents per share, in the 2008 quarter.
The 2009 quarter included after-tax restructuring costs of $3.6 million, or 6 cents per share, for the consolidation of certain functions at its television stations and the continued rationalization of functions and centralization of processes in its newspaper division. The 2008 quarter included after-tax costs totaling $36.9 million, or 69 cents per share, reflecting severance costs in the newspaper division, the write-down of certain assets in the television division, the write-down of a newspaper investment, and costs related to the spin-off of Scripps Networks Interactive.
Expenses, excluding restructuring costs, were reduced 17 percent to $185 million from $223 million in the year-ago period.
Income from continuing operations in the fourth quarter of 2009, net of tax, was $14.1 million, or 22 cents per share, compared with a net loss from continuing operations of $3.6 million, or 6 cents per share, in the 2008 quarter.
The 2009 quarter included after-tax restructuring costs of $3.6 million, or 6 cents per share, for the consolidation of certain functions at its television stations and the continued rationalization of functions and centralization of processes in its newspaper division. The 2008 quarter included after-tax costs totaling $36.9 million, or 69 cents per share, reflecting severance costs in the newspaper division, the write-down of certain assets in the television division, the write-down of a newspaper investment, and costs related to the spin-off of Scripps Networks Interactive.
Friday, October 23, 2009
Newsday Will Tweak Web Paywall as Conditions Warrant
Newsday will alter what's free and what isn't on its website after it unveils a new subscriber requirement next week, Debby Krenek, managing editor and senior vice president/digital media, tells Editor & Publisher's Joe Strupp.
Newsday print subscribers and Optimum customers will have total access to the website while other customers will be charged $5 per week.
Jennifer Saba of Editor & Publisher talked to some media analysts who sai it's not as risky of a venture as it would seem at first glance:
Krenek, who has overseen the Web site since 2001, told E&P nothing is set in stone -- and the site may well make some paid items free, and vice versa, as time goes on.
"The Web is a moving, breathing thing. We are going to be able to watch and see what people do," said Krenek. "We are going to be tweaking based on what [readers] have to say. One of the great things about the Web is that you get immediate feedback on what your users are coming to you for."
For example, if a big story breaks that editors feel should require free access, they will allow it. "If there is something that is of critical need for Long Islanders to be aware, we would give them access," she said. "Some major disaster in the area, some health scare, anything we feel would be critical.
"We think it is going to be successful and a real value for Long Islanders," said Krenek, a former editor of New York's Daily News. "We have a unique opportunity to do it."
Newsday print subscribers and Optimum customers will have total access to the website while other customers will be charged $5 per week.
Jennifer Saba of Editor & Publisher talked to some media analysts who sai it's not as risky of a venture as it would seem at first glance:
Alan Mutter, a newspaper observer and author of Reflections of a Newsosaur. "It's not nearly as bold as an experiment as it appears to be," he said. Since Cablevision already reaches 75% of Long Island, there is a "much smaller risk of losing online traffic than the typical newspaper would."
Newsday can take such gamble thanks to Cablevision's online subscribers. If Newsday were to go this alone and not offer free access to Optimum Online users it would reach much less of its core market. According to Newsday's most recent Audit Bureau of Circulations Audit Report for the year ending September 2008, Newsday's average daily circulation covered 38% of Suffolk County and 36% of Nassau County.
Noted Ken Doctor, an affiliate analyst at Outsell Research and author of Content Bridges: "I think this is a one-off because of the unique nature of a cable company that owns a newspaper. I don't see it as a model that applies to anybody else."
What is interesting, said Doctor, is that Cablevision is essentially charging for access, not content. And it's using a model that is already very familiar to the newspaper industry: bundling.
Thursday, October 22, 2009
Newsday to Charge $260 Annually to Access Website
[CORRECTION: Newsday will charge $5 a week. The original version of this post had incorrectly said $5 a month.]
If I want to read my old newspaper online, I'll have to pay $260 a year to do so.
Newsday announced today that it will charge that amount to access its content on Newsday.com. The subscriber model is effective next Wednesday.
"We are excited about this model because in addition to a unique ability to immediately reach about 75 percent of Long Island households, we believe the hyper-local approach is right for Long Island," said Debby Krenek, Newsday managing editor and senior vice president/digital, said on its website.
The $260-a-year price point represents $5 a week, which equals the paper's seven-day home subscription plan. The newspaper said most content of Newsday.com will be accessible only to those who subscribe to the print newspaper or Optimum Online, or those who are willing to pay the fee.
Some online content that will remain free includes the home page, weather, obituaries, classified ads, entertainment listings and school closings.
Newsday is the first major newspaper to take this step. Every newspaper in the country has been struggling with lost revenues in print advertising, citing the fact that more people are going to their websites to access news and information than paying for a print version. Other newspapers, most notably The New York Times, are considering some type of pay structure for their websites.
The announcement comes the same week that Editor & Publisher released its monthly website rankings in which Newsday registered a 25 percent drop in traffic from the previous month.
The argument against a move such as this is that consumers will probably become more selective in the websites they choose to read, especially during difficult economic times. Very few people will be willing to pay hundreds of dollars a year to read more than one or two newspapers online. This would reduce the traffic to all newspapers overall.
For instance, typically I visit Newsday, The New York Times, The Washington Post, POLITICO, my local paper and about four or five others each day. If each started to charge $260 a year for access, I only pick one to read (which one I don't know).
The other argument is that a paywall could reduce nation exposure and limit links to your site. This is not so much a concern for Newsday as it has for years placed its primary focus on local reporting.
What will be interesting to see is how the public reacts to pay news sites. No one knows if consumers will accept it at a level that makes it a success for media outlets, or if consumers will -- after years of free access -- equate it to paying to bring your luggage along on a plane trip.
If I want to read my old newspaper online, I'll have to pay $260 a year to do so.
Newsday announced today that it will charge that amount to access its content on Newsday.com. The subscriber model is effective next Wednesday.
"We are excited about this model because in addition to a unique ability to immediately reach about 75 percent of Long Island households, we believe the hyper-local approach is right for Long Island," said Debby Krenek, Newsday managing editor and senior vice president/digital, said on its website.
The $260-a-year price point represents $5 a week, which equals the paper's seven-day home subscription plan. The newspaper said most content of Newsday.com will be accessible only to those who subscribe to the print newspaper or Optimum Online, or those who are willing to pay the fee.
Some online content that will remain free includes the home page, weather, obituaries, classified ads, entertainment listings and school closings.
Newsday is the first major newspaper to take this step. Every newspaper in the country has been struggling with lost revenues in print advertising, citing the fact that more people are going to their websites to access news and information than paying for a print version. Other newspapers, most notably The New York Times, are considering some type of pay structure for their websites.
The announcement comes the same week that Editor & Publisher released its monthly website rankings in which Newsday registered a 25 percent drop in traffic from the previous month.
The argument against a move such as this is that consumers will probably become more selective in the websites they choose to read, especially during difficult economic times. Very few people will be willing to pay hundreds of dollars a year to read more than one or two newspapers online. This would reduce the traffic to all newspapers overall.
For instance, typically I visit Newsday, The New York Times, The Washington Post, POLITICO, my local paper and about four or five others each day. If each started to charge $260 a year for access, I only pick one to read (which one I don't know).
The other argument is that a paywall could reduce nation exposure and limit links to your site. This is not so much a concern for Newsday as it has for years placed its primary focus on local reporting.
What will be interesting to see is how the public reacts to pay news sites. No one knows if consumers will accept it at a level that makes it a success for media outlets, or if consumers will -- after years of free access -- equate it to paying to bring your luggage along on a plane trip.
New York Times Reports 16.9 Percent Drop in 3Q Revenues Compared to 3Q 2008
The New York Times Co. reported in a press release this morning that total revenues decreased 16.9 percent to $570.6 million in the third quarter from $687.0 million in 2008's third quarter primarily because of lower print advertising results.
Advertising revenues decreased 26.9 percent; circulation revenues rose 6.7 percent; and other revenues decreased 38.5 percent.
But there was some optimism in the statement.
Janet Robinson, president and chief executive officer, said in the press release that “looking ahead, visibility remains limited for advertising in the fourth quarter. But as is the case across the media sector, we have seen encouraging signs of improvement in the overall economy and in discussions with our advertisers. Early in the fourth quarter, print advertising trends, in comparison to the third quarter, have improved modestly, while digital advertising trends are improving more significantly."
The company, which just announced a reduction in its New York Times newsroom workforce of about 100 employees, expects to save approximately $475 million in operating costs as a result of reductions in nearly all major expense categories.
Advertising revenues decreased 26.9 percent; circulation revenues rose 6.7 percent; and other revenues decreased 38.5 percent.
But there was some optimism in the statement.
Janet Robinson, president and chief executive officer, said in the press release that “looking ahead, visibility remains limited for advertising in the fourth quarter. But as is the case across the media sector, we have seen encouraging signs of improvement in the overall economy and in discussions with our advertisers. Early in the fourth quarter, print advertising trends, in comparison to the third quarter, have improved modestly, while digital advertising trends are improving more significantly."
The company, which just announced a reduction in its New York Times newsroom workforce of about 100 employees, expects to save approximately $475 million in operating costs as a result of reductions in nearly all major expense categories.
Wednesday, October 21, 2009
Media General Posts 3Q Loss of $62.5 Million
Media General Inc., the Richmond, Va.-based publisher of the Richmond Times-Dispatch and The Tampa Tribune, reported a loss of $62.5 million, or $2.80 per share, in the third quarter today.
In 2008's third quarter, the media company had a profit of $6.1 million, or 27 cents per share. Revenue reportedly dropped 18 percent to $158 million.
The absence of Olympic and political ad revenues, which contributed about $18.5 million in sales a year ago, were the reasons for the downturn, the company said.
Chief executive officer Marshall Morton conceded that the "advertising environment in the third quarter remained challenging."
Media General says a hefty write-down in the value of its assets took profits down by $84 million. Excluding special items, it says earnings would have come to $4.4 million, or 20 cents per share.
In 2008's third quarter, the media company had a profit of $6.1 million, or 27 cents per share. Revenue reportedly dropped 18 percent to $158 million.
The absence of Olympic and political ad revenues, which contributed about $18.5 million in sales a year ago, were the reasons for the downturn, the company said.
Chief executive officer Marshall Morton conceded that the "advertising environment in the third quarter remained challenging."
Media General says a hefty write-down in the value of its assets took profits down by $84 million. Excluding special items, it says earnings would have come to $4.4 million, or 20 cents per share.
Friday, May 29, 2009
Institute Identifies Four Methods Publishers Could Use to Raise Revenues
Researchers at a Donald W. Reynolds Journalism Institute conference have developed four tools newspaper publishers can use to increase revenues and profits.
“With newspapers in crisis Americans are losing their highest quality source of information” said Esther Thorson, director of research at the Reynolds Journalism Institute at the University of Missouri. “Independent researchers have developed several approaches that newspaper managers may not know exist which can help newspapers increase revenues and grow profits.”
Thorson convened a forum at the University of Missouri on May 18 and 19 that brought together both newspaper executives and experts in news research. The purpose was to explore research designs aimed at solving the industry's urgent problems using advanced analytic tools with practical applications. The conference, titled “How Newspapers Could Have Saved Themselves and How Some Still Can,” identified financial strategies to significantly increase revenues and profits and to help newspaper finance managers better understand how budgeting decisions across news, advertising, and circulation departments affect revenues and profits.
Among the approaches presented:
1. A resource optimization model publishers can use to measure whether they are investing too much, too little, or the right amount among news, ad sales, and distribution departments for maximum revenue growth. The model was tested on hundreds of newspapers by Thorson, Shrihari Sridhar, assistant professor at Michigan State University, and Murali Mantrala, Sam. M. Walton distinguished professor of Marketing at the University of Missouri.
2. Guidelines for optimal distribution of layoffs and buyouts among departments. This approach, based on dozens of newspapers’ experiences, shows which departments should shoulder the biggest and smallest shares of employee layoffs for optimal revenue and profit maintenance. Developed by Thorson, Mantrala, Sridhar, and Elina Tang of the University of Missouri, the study found that cost-cutting evenly across the board at many newspapers may actually destroy profitability.
3. A new page-view pricing strategy for online and print ads that offers a more accurate picture of consumer online behavior for advertisers, offered by Jim Smith, vice president of research for Morris Communications.
4. Online pricing strategies that can help publishers decide how to repurpose, hold back, or charge for online content that also appears in print. One approach, similar to how movie studios have multiple revenue streams from theater showings, pay-per-view, DVD sales, and foreign sales, was offered by Hugh Martin, associate professor at the Grady College of Journalism and Mass Communication at the University of Georgia. A second approach was presented by Hsiang Iris Chyi, assistant professor at the University of Texas at Austin.
“Newspapers hold rich sources of data which can be mined for additional revenue generation,” Thorson said. “Academic researchers have the expertise to mine this data for the benefit of newspapers and their customers.”
“With newspapers in crisis Americans are losing their highest quality source of information” said Esther Thorson, director of research at the Reynolds Journalism Institute at the University of Missouri. “Independent researchers have developed several approaches that newspaper managers may not know exist which can help newspapers increase revenues and grow profits.”
Thorson convened a forum at the University of Missouri on May 18 and 19 that brought together both newspaper executives and experts in news research. The purpose was to explore research designs aimed at solving the industry's urgent problems using advanced analytic tools with practical applications. The conference, titled “How Newspapers Could Have Saved Themselves and How Some Still Can,” identified financial strategies to significantly increase revenues and profits and to help newspaper finance managers better understand how budgeting decisions across news, advertising, and circulation departments affect revenues and profits.
Among the approaches presented:
1. A resource optimization model publishers can use to measure whether they are investing too much, too little, or the right amount among news, ad sales, and distribution departments for maximum revenue growth. The model was tested on hundreds of newspapers by Thorson, Shrihari Sridhar, assistant professor at Michigan State University, and Murali Mantrala, Sam. M. Walton distinguished professor of Marketing at the University of Missouri.
2. Guidelines for optimal distribution of layoffs and buyouts among departments. This approach, based on dozens of newspapers’ experiences, shows which departments should shoulder the biggest and smallest shares of employee layoffs for optimal revenue and profit maintenance. Developed by Thorson, Mantrala, Sridhar, and Elina Tang of the University of Missouri, the study found that cost-cutting evenly across the board at many newspapers may actually destroy profitability.
3. A new page-view pricing strategy for online and print ads that offers a more accurate picture of consumer online behavior for advertisers, offered by Jim Smith, vice president of research for Morris Communications.
4. Online pricing strategies that can help publishers decide how to repurpose, hold back, or charge for online content that also appears in print. One approach, similar to how movie studios have multiple revenue streams from theater showings, pay-per-view, DVD sales, and foreign sales, was offered by Hugh Martin, associate professor at the Grady College of Journalism and Mass Communication at the University of Georgia. A second approach was presented by Hsiang Iris Chyi, assistant professor at the University of Texas at Austin.
“Newspapers hold rich sources of data which can be mined for additional revenue generation,” Thorson said. “Academic researchers have the expertise to mine this data for the benefit of newspapers and their customers.”
Saturday, May 23, 2009
Pew Study: Classified Revenue Losing Ground Fast to Online Advertising
Newspaper classified revenue has dropped about 50 percent since 2000 while the number of online adults who have used online classifieds has more than doubled in the past four years, the Pew Research Center’s Internet & American Life Project survey found.
The April survey reports that 49 percent of Internet users say they have used online classified sites, compared with 22 percent of online adults who had done so in 2005.
Annual revenue for newspapers from classified advertising in 2000 was more than $19.608 billion, but in 2008 it was $9.975 billion, the study found. That represents a 49 percent drop, as represented by the Pew chart above.
The survey also said that on any given day about a tenth of Internet users visit online classified sites, up from 4 percent in 2005.
This data should make all publishers concerned. It may be that Google isn't the only culprit in the demise of print newspapers after all. Classified advertising has long been the lifeblood of print newspapers. The ideas of restricting newspaper website to subscribers could be a short-term fix. But if it classified revenue continues to dwindle, and there's nothing to suggest the bleeding will stop any time soon, it will be tough for newspapers to survive in any form.
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