Posted on 05/22/2008 7:59:38 AM PDT by abb
Media General reported weak April newspaper financial results Thursday, largely on plunging revenues in Tampa and its other two metro markets -- which drove help-wanted classified revenues down 42% and real estate down 40%.
Overall revenue at the Richmond, Va.-based publisher and broadcaster fell 10.9% to $78.7 million in April.
The Associated Press now reports that Media General says it will cut 750 jobs by the beginning of the third quarter to reduce operating costs. "The Richmond company says the reductions by October are in response to an overall slowing of the U.S. economy and a deepening recession in Florida, where it has numerous operations including The Tampa Tribune.
"The cuts will result in an annualized cost savings of $40 million. Media General says it expects to expense severance costs of $4 million to $4.5 million in the second quarter of 2008."
Staff reductions are spread across the company's publishing, broadcast and corporate operations. The company did increase positions in its interactive media division.
Newspaper and publishing revenues fell 14.3% in the month, pushed down by results from the Tampa Tribune, where revenues plunged 27%.
Media General noted that revenue at its other markets fell less precipitously, with Virginia down 9.9%; North Carolina decreasing 7.6%; and Alabama down 2.1%.
Revenues rose 3.7% in South Carolina, mostly from a new weekly paper in the Florence/Myrtle Beach market, Media General said.
Classified ad revenue plunged 29%, mostly on the Tampa results. Automotive classified fell 38% in its three metro markets.
Retail advertising revenue declined $1.2 million, or 5.5%, with weakness in Tampa offsetting what Media General said was a "nominal" increase in Richmond.
"The Publishing Division's April results reflected the continued deep recession in Florida, which impacted all major advertising categories at our Tampa operations, particularly classified advertising," Media General President and CEO Marshall N. Morton said in a statement.
Interactive local ad spending was up 42% for the month, Morton said, noting that online classified revenue declined in April.
Media General offered an extensive buyout program to Tampa-area employees earlier this year, and Morton said the company will shed a net 750 full-time equivalent positions by the third quarter.
Of those job cuts, 745 are expected to come from newspapers and other publications, 45 from broadcast, and 20 from corporate staff departments. The company will increase jobs at its Interactive Media division by 60, Morton said.
ping
Dang. How long could a patient who is bleeding so profusely last?
Been long enough already. But the end is certain, even if the timing is a bit delayed.
About 2 1/2 years ago, I started systematically following this phenomenon. Back then I dared not hope the Drive-Bys would crater as quickly as they have. It is amazing to watch them melt before our very eyes.
There’s more to the story than that. The internet has opened new venues to people to sell without having to use the local paper. Craig’s list is free for example and you can sell all sorts of stuff that way. Furthermore, if the real estate market is slowing down then that’s going to result in a drop in business as well.
Damn that Craig and his list!
http://biz.yahoo.com/ap/080522/media_general_sales.html?.v=1
Media General April revenue down on classifieds
Thursday May 22, 9:58 am ET
Media General April revenue slips due to ongoing classified advertising softness
RICHMOND, Va. (AP) — Newspaper publisher Media General Inc. said Thursday its April revenue dropped 10.9 percent, hurt mostly by ongoing classified advertising weakness, particularly in the Tampa, Fla., market.
The newspaper industry has struggled as consumers and advertisers continue to migrate to the Internet. Companies have tried to combat the issue by cutting costs and ramping up Web operations.
Media General, which also operates television stations, reported total revenue fell to $78.7 million, from $88.3 million in the prior-year period.
Publishing revenue slipped 14.3 percent to $44.9 million, with classified ad sales slumping 29 percent.
Total ad sales for the month declined 16.6 percent to $37.2 million.
Broadcast revenue dipped 8 percent to $30.6 million, with lower national ad sales partially offset by increased political advertising.
Interactive sales climbed 15.5 percent to $3.8 million, on increased local advertising sales and revenue from DealTaker.com, which the company acquired in March.
The company said it is also continuing with job cuts as it looks to control costs, and expects to lower its full-time employee level to 6,150 from 6,900 by the start of the third quarter. Media General expects the cuts will result in annual savings of $40 million, which will be fully realized next year. It expects severance costs between $4 million and $4.5 million in the second quarter related to the job cuts.
Media General publishes 25 daily newspapers, including The Tampa Tribune and Richmond Times-Dispatch, as well as community newspapers and approximately 275 weekly newspapers and other targeted publications. The company also owns and operates 22 network-affiliated television stations.
Shares rose 64 cents, or 4.3 percent, to $15.45 in morning trading.
http://biz.yahoo.com/ap/080522/media_general_job_cuts.html?.v=2
Media General to cut nearly 11 pct of work force
Thursday May 22, 11:21 am ET
By Michael Felberbaum, Associated Press Writer
With economy slumping, Publisher Media General says 750 jobs to go by October
RICHMOND, Va. (AP) — Media General Inc., the newspaper publisher and television station operator, said Thursday it will cut nearly 11 percent of its work force by October to reduce operating costs.
The 750 job cuts are paired with other operating cost reductions, as the company faces a slumping U.S. economy and a deepening recession in Florida, where it has numerous operations, Marshall N. Morton, the company’s president and chief executive said in a news release.
“Media General continues to implement its announced performance improvement initiatives across all parts of the company,” Morton said. “Our efforts to reduce operating costs have necessarily included personnel.”
The publisher of the Richmond Times-Dispatch, The Tampa Tribune and Winston-Salem Journal said it expects annual savings of $40 million from the job cuts, which will be fully realized next year. Media General will post severance charges of between $4 million and $4.5 million in the second quarter.
Staff reductions, which will decrease the total number of employees to 6,150, are spread across publishing, broadcast and corporate operations. The company did, however, increase positions in its interactive media division as it focuses on the Internet.
Shares of Media General rose 7.7 percent, or $1.14, to $15.95 in morning trading.
The company also said its April revenue dropped 10.9 percent, hurt mostly by weakness in classified advertising. The company reported total revenue fell to $78.7 million, from $88.3 million in the prior-year period.
The newspaper industry has struggled as consumers and advertisers continue to migrate to the Internet. Companies have been forced to cut costs and ramp up Web operations.
Media General said last month its first-quarter loss widened to $20.3 million in the January-March period, compared with a loss of $6.5 million during the same period last year.
In addition to its three metropolitan newspapers, Media General owns 22 daily community newspapers in Virginia, North Carolina, Florida, Alabama and South Carolina as well as community newspapers and approximately 275 weekly newspapers and other targeted publications. It also owns 22 network-affiliated television stations.
Media General: http://www.mediageneral.com
Please Lord, let Jeffy Schapiro be on that list...
Him and that pro-illegals guy who writes all the front page articles about how tough the illegals have it here. (I cannot remember his name right now).
Yep, him too and Michael Paul Whiney-ams.
beat me to it.
Staff reductions, which will decrease the total number of employees to 6,150 by the beginning of the third quarter, are spread across publishing, broadcast and corporate operations. The company did, however, increase positions in its interactive media division as it focuses on the Internet.
Absolutely brutal. No way they are making those level of cuts without carving some of the meat off the bone with the the fat that's being lopped off.
And they are going to continue all those operations with just over 6000 employees? That seems like a stretch. I expect they may have to stop printing some of those papers and focus on their core assets.
Journal Communications Newspaper Ad Revenue Falls 8.6%
By E&P Staff
Published: May 22, 2008 5:40 PM ET
CHICAGO Journal Communications Inc. reported after markets closed Thursday that its April revenue fell 5.3% to $35.91 million, driven down in part by ad revenue that was off 9.6% at its flagship Milwaukee Journal Sentinel.
Overall advertising revenue for the publisher and broadcaster was down 6.3%, Journal Communications said.
Newspaper revenue fell 6.2% with ad revenue off 8.6% and circulation revenue down 2%.
At the Journal Sentinel, which had advertising revenue of $11.33 million in April, classified ad revenue was down 18.1% on big drops in the three most troubling categories for newspapers these days.
Real estate classified revenue fell 26.1%, while help-wanted was down 21.8%, and automotive decreased 11.9%.
Retail advertising revenue was down 4.1%,with national down 5.8%.
Online ad revenue jumped 21.3 to $1.20 million.
Ad revenue at Journal Communications community papers and shoppers slipped 3.9% to $2.74 million in the month.
Journal Communications (NYSE: JRN) stock ended trading Thursday at $5.95, up 18 cents, or 3.12%.
E&P Staff (letters@editorandpublisher.com)
Links referenced within this article
letters@editorandpublisher.com
http://www.editorandpublisher.com/eandp/news/mailto:
Find this article at:
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_content_id=1003807394
We can always hope Schapiro will be cut loose but I fear he will not. He is way too liberal.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.