Tribune Earnings Down 30 Percent, Broadcasting Soars

Tribune Co. said Tuesday that its net income declined by 30 percent in the first quarter, as gains in broadcast revenues were offset by double-digit publishing declines and higher expenses.

Net income was $41.1 million, or 41 cents per share, compared with $58.4 million, or 58 cents per share a year ago. Tribune Co. had an operating profit of $74 million, an 11 percent decline.

Consolidated revenue for the first quarter was $852 million, up 21 percent from the same quarter last year. The acquisition of Local TV increased revenue by nearly $145 million, the Chicago-based media company said Tuesday.

Publishing revenue fell 3 percent to $454 million, with the largest declines at the Chicago Tribune, Los Angeles Times and Baltimore Sun.

Bolstered by last year’s acquisition of the Local TV station group, broadcasting revenue was up 67 percent to $398 million. The 19-station group, acquired last December in a $2.73 billion deal, accounted for nearly all of that increase.

Broadcasting advertising revenue increased 59 percent, or $113 million, with the Local TV stations bringing in $116 million of advertising revenue for the quarter.

Retransmission consent fees increased $46 million in the first quarter, with Local TV station contributing $24 million to that total. The fees, paid by cable operators to carry television programming on their systems, are a growing source of revenue for Tribune Co. and other station owners.

Broadcasting operating expenses were up 74 percent, or $142 million, in the first quarter. That increase includes $47 million in direct pay and benefits for the Local TV stations, and a $22 million increase in programming expenses.

Broadcasting operating profit was up 37 percent, or $17 million, with the Local TV stations accounting for $16 million of that total.

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