Posted on 10/18/2007 8:13:10 AM PDT by Milhous
RICHMOND, Va. -- Media General Incorporated says its third-quarter earnings plunged 88% as advertising revenue continued to erode and the year-ago quarter was boosted by businesses since sold.
The Richmond-based newspaper publisher and television station operator said today that net income fell to $2.5 million, or 11 cents per share, from $20.6 million, or 87 cents per share, a year ago.
Excluding a gain from television stations the company sold off, last year's earnings from continuing operations were $7.7 million, or 33 cents per share.
Analysts polled by Thomson Financial expected earnings of 6 cents per share on revenue of $234 million.
Revenue fell 5% to $230.3 million from $241 million last year. Publishing revenue paced the decline, as newspaper advertising slumped,
Media General said it expects "continued softness" in the fourth quarter in classified and retail advertising, before spending on the Olympics and national elections gives a boost to 2008 earnings and revenue.
ping
Some of these Enronning Dinosaurs are approaching a free fall.
If there are local recessions in their market areas, they might not make it through 2008.
....sniff....sniff...toobadsosad
Media General Incorporated says its third-quarter earnings plunged 88% as advertising revenue continued to erode ...
/s
.
No business can sustain a loss of 90 percent of its revenues, all this whistling past the graveyard notwithstanding. At this rate, their only solution is to cut back on costs, which makes an already worthless newspaper even more worthless, so even fewer people buy it and ad revenues shrink even more. It’s a classic death spiral brought on by arrogance, technology, and a changing market.
Remember when all the MSM reporters mocked and belittled Matt Drudge when he spoke to the National Press Club in 1998?
I love that:
'There aren't many in this hallowed room who consider you a journalist,' said Harbrecht.
Journalism isn't Aerospace Engineering.
The MSM ego will never learn humility until they are collecting unemployment checks.
Who is laughing now?
I remember that Drudge performance well,....loved it!
“Good time to raise the dividend ?
Media General Incorporated says its third-quarter earnings plunged 88% as advertising revenue continued to erode ...”
Why not. Other Enronning Dinosaur Fishwraps and media outlets seem to increase their dividends as their competitive market shares collapse.
“Remember when all the MSM reporters mocked and belittled Matt Drudge when he spoke to the National Press Club in 1998?”
At that time, the conservative internet sites were limited and small in scope. Drudge was considered a clown by the sneering disease ridden elites of the MSM.
Now 9 years later, the MSM may well be on their death beds or at least suffering from severe and probable fatal self inflicted wounds.
Media General, which runs newspapers, television stations and Web sites, reported third-quarter results Thursday morning, revealing a 26% profit decline in its broadcast division.
The company also said it has no plans to split up its newspaper and broadcasting businesses.
Media General, which owns 23 television stations, showed a $16.2 million profit from its broadcasting division on revenues of $91 million. Revenues were down 3.5% from the same quarter a year ago. The declines in this segment were attributed to tough comparables tied to an off-election year.
Political-advertising revenues were $2.5 million in the third quarter of this year versus $11.5 million for the same period a year ago. The company said this year’s political-related revenues included spending on presidential and image campaigns in Florida and South Carolina, adding that local times sales rose 3.2% in the quarter while national time sales rose 10.3%.
Looking ahead to the fourth quarter, the company expects local time sales to increase but said it will not be able to match the $34 million in political revenues logged in the fourth quarter of 2006.
On a consolidated basis, Media General’s revenue slid 4.5% to $230.5 million and its net income for the quarter was $2.5 million, or $0.11 per share, well over consensus estimates of $0.06. Earnings for Q3 2006 were $20.6 million, or $0.87 per share, but included income from CBS-affiliated stations that were sold last year. Income from continuing operations for that quarter was $7.7 million, or $0.33 per share.
The publishing segment profit was down 7.4% to $22 million. Publishing revenues were down 6.7% to $131.5 million led by an 8.3% drop in newspaper-advertising revenues. The company recorded declines of 16.1% in classified-ad revenue, 8% in national ad revenues and less than 1% in retail revenues. Circulation revenue in the fourth quarter declined by less than 1%.
Media General’s interactive division recorded revenues of $9.7 million, a 32% increase from the same quarter a year ago. The $3.4 million loss in the segment in Q3 was largely to a $2.3 million investment write-off.
Media General is one of several companies speculated as candidates to split up its different business lines, as Belo and E.W. Scripps recently announced. But as Gannett did Wednesday, Media General said Thursday that it has no plans to separate its newspaper and broadcast businesses.
In its earnings release, the company stated, “Customers and shareholders alike benefit from the company's focus on being the local multimedia leader in strong growth markets, principally in the Southeast. Media General's integrated presence in print, broadcast and on the Web enables the company to produce better journalism, deliver a higher-quality product, draw more audience and improve its market position better than it otherwise could.”
Poor MSM.
This group still made money, just not as much as last year. I think they have a ways to go before they are actually losing money, much less going broke.
I believe there is a difference between revenue and earnings.
Their revenue only dropped 5%, to 230.3 million, and came in just under expectations of $234 million.
THeir earnings dropped 88%, to 11 cents per share, but analysts had expected 6 cents a share, so their earnings actually beat expectations.
This particular group isn’t dead yet, although they are essentially carrying their newspaper business through their TV business.
Disclaimer: They pay me for opinion columns.
Media General owns Metropolitan Newspapers
The Tampa Tribune
Richmond Times-Dispatch
Winston-Salem Journal
Community Newspapers
Florida
(Brooksville) Hernando Today
(Sebring) Highlands Today
Jackson County Floridan
Northern Virginia
Manassas Journal Messenger
Potomac (Woodbridge) News
Culpeper Star-Exponent
Central Virginia
The (Lynchburg) News & Advance
The (Charlottesville) Daily Progress
The (Waynesboro) News Virginian
Danville Register & Bee
Southwest Virginia
Bristol Herald Courier
North Carolina
Hickory Daily Record
Statesville Record & Landmark
The (Morganton) News Herald
The (Marion) McDowell News
(Concord & Kannapolis) Independent Tribune
The (Eden) Daily News
The Reidsville Review
Alabama
Dothan Eagle
Opelika-Auburn News
The Enterprise Ledger
South Carolina
Sorry for the mistake. I should have read more carefully.
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