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
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.