Posts Tagged ‘Newspapers’

Major city papers can be profitable

Tuesday, August 11th, 2009

Here’s a “no kidding” story from The New York Times:  The Seattle Times, now the only newspaper in town and privately owned, after cutting hundreds of positions,  is turning a profit.

“On a month-to-month basis, we are starting to operate in the black,” Frank A. Blethen, the publisher and chief executive of The Seattle Times Company, told The NYT. The Times is one of the last family-run papers in the country, controlled since 1896 by the Blethens. They own 50.5 percent of the company (the McClatchy Company owns the rest).

The Times had a joint operating agreement with The Seattle Post Intelligencer, which closed in March. The Hearst Corporation kept the P-I’s Web site alive as a news operation with a small staff at SeattlePI.com.

The Seattle paper has cut more than 200 newsroom positions and raised its prices in March, increasing circulation revenue. With most P-I readers on board, Times executives say they have been able to maintain the ad rates they charged for space in both papers. The volume and revenue were down sharply, but Blethen said the decline was consistent with what had happened across the industry.

Scripps up in 2Q, warmed by glow of TV

Tuesday, August 11th, 2009

E.W. Scripps Co. shows a profit in its second quarter earnings reports and says TV ad revenue is doing better, according to Business Courier of Cincinnati.

“In the near term, we are seeing some slight improvement in the flow of advertising in our markets, particularly at the television stations, which have increased their revenue projections – albeit very modestly – during each of the past seven weeks,” said Rich Boehne, president and CEO.

Like other media companies, Scripps profited by cutting jobs and salaries and other expenses.

Scripps’ television station segment saw second-quarter revenues fall 24 percent while the newspaper segment fell 22 percent and licensing and other media also fell 22 percent.

The media company posted second-quarter net income of $2.3 million, or 4 cents per share, compared to a net loss of $531.2 million, or $9.78 per share, in the year-ago quarter. Operating revenues were $193.9 million, versus $250.9 million. Analysts, on average, had expected a net loss of 11 cents per share, and revenues of $203.2 million.

Scripps, based in Cincinnati, operates daily and community newspapers in 14 markets, including the Daily Camera (Boulder, Co.) and Knoxville News Sentinel, and 10 broadcast TV stations. It also operates Scripps Howard News Service and United Media.

Here’s the earnings call transcript.

Newspaper ads to rebound in ‘10

Monday, August 3rd, 2009

One analyst says newspapers will find their niche and rebound next year, with an ad revenue gain of 2.4 percent to $36.8 billion in 2010.

Bloomberg says a report from Borrell Associates Inc. has the optimistic outlook. The projection runs against estimates from other researchers, including Magna Global, which said last month ad revenue for newspapers would fall 9.3 percent in 2010.

“We’re expecting U.S. newspapers to see a decline in 2009, then a mild rebound over the next five years,” Borrell says on its Web site. “Our latest projections call for a 2.4% increase in newspaper advertising in 2010, and low single-digit increases for several more years.”

“Borrell sees ‘newspapers redefining their products and maintaining a strong marketplace niche,’ President Colby Atwood said in a report, according to Bloomberg. ‘Larger papers will continue to experience layoffs, abbreviated publication schedules and outright closures.’