Tribune Publishing Reports $44M 1Q Loss

Chicago-based Tribune Publishing, which owns the Chicago Tribune and other major newspapers, reported a $44 million first-quarter loss, due primarily to an accounting adjustment related to the COVID-19 pandemic.

The company took a $51 million impairment charge to reflect a reduction in the value of its assets and actions taken to reduce the company’s real estate footprint.

First-quarter revenue totaled $216.5 million, down 11.5% from the same period last year, the company reported Friday. Year-over-year, advertising revenue for the quarter fell 20.6%.

Tribune Publishing now has 370,000 digital-only subscribers, up from 283,000 at the end of the first quarter in 2019. Digital subscription revenue was up 42%, compared to the first quarter of 2019.

The company didn’t offer full-year guidance, but projected second-quarter revenues would fall to about $175 million. That would represent a 30% revenue decline from a year ago.

“The COVID-19 pandemic and the recent civil unrest are unprecedented in my lifetime,” Tribune CEO Terry Jimenez said during an earnings call Friday morning. “But despite these challenges, we remain optimistic about the long-term prospects for our company.”

Like much of the media industry, Tribune Publishing has struggled during the COVID-19 pandemic, implementing furloughs, targeted staff cuts and salary reductions across its newspapers to offset advertising declines. Last month, the company suspended its 25-cent cash dividend.

“We’re going to continue to make sure that we’re focused on reducing the cost structure in line with where revenue trends will be in the future,” Jimenez said. “We’re going to take other actions to help reduce the expense out of the business.”

In addition to the Chicago Tribune, Tribune Publishing owns the Baltimore Sun, Hartford Courant; Orlando Sentinel; South Florida Sun Sentinel; New York Daily News; the Capital Gazette in Annapolis, Maryland; The Morning Call in Allentown, Pennsylvania; the Daily Press in Newport News, Virginia; and The Virginian-Pilot in Norfolk, Virginia.