Friday, August 30, 2013

Tribune Co. Sez 2Q Revenue Fell 10 Percent

Operating revenues continue to fall at Tribune Co., declining 10 percent in the second quarter,  according to The Chicago Tribune.

The Chicago-based media company saw consolidated revenues of $730 million, down $86 million from the same quarter last year. The largest drop was in its broadcasting division, where weaker television advertising sales contributed to a $66 million revenue decline for the quarter.

Tribune Co. had an operating profit of $90 million for the quarter, down 28 percent from last year. It  reported a net income of $66.3 million, or 66 cents per share.

The company, which emerged from a four-year stay in Chapter 11 bankruptcy on December 31, is required to release its financial statements under the terms of its reorganization agreement.

Tribune Co. owns 23 television stations including WGN-Ch. 9; national cable channel WGN America; WGN-AM 720; eight daily newspapers including the Chicago Tribune and Los Angeles Times; and other media assets.

In July, the company announced the  acquisition of 19 television stations from Cincinnati-based Local TV LLC for $2.73 billion, pending approval by the Federal Communications Commission.

Broadcasting revenues for the quarter were $260 million, down from $327 million during the same period last year. That difference includes $41 million in one-time copyright royalties paid to WGN America in 2012. Meanwhile, advertising revenue fell by $17 million, or 7 percent for the quarter. The company cited weakness at WPIX-TV in New York and at WGN-TV, where sports advertising revenue declined in lockstep with the fortunes of Chicago’s baseball teams.

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