EW Scripps 3Q Loss Narrows; Print Ads Slide 27%
DOW JONES NEWSWIRES
E.W. Scripps Co. (SSP) posted a narrower third-quarter loss amid larger year-
earlier restructuring costs, but print advertising continued to slide, falling
27%.
Chief Executive Rich Boehne said Scripps has "made significant progress" in
its efforts to shake off the advertising woes but added he expects the
difficulties to continue. In August, Boehne reported seeing "some slight
improvement" in advertising, particularly at its television stations, a view he
reiterated Thursday.
Scripps credited cost controls with enabling it to generate profit in all
three of its operating divisions during the quarter. The company also said it
reduced long-term debt to a level that is below the value of its cash and short-
term investments.
Like other newspaper publishers, Scripps has slashed costs in an effort to
stay afloat amid a prolonged industrywide advertising slump and a migration of
consumers to the Internet. The company owns newspapers and 10 broadcast-
television stations.
Scripps' loss narrowed to $3.3 million, or 6 cents a share, from $16.8
million, or 31 cents a share, a year-earlier. The year-ago period included
restructuring costs of $22 million related to the spinoff of its cable-TV and
Internet division into a public company, Scripps Networks Interactive Inc. (SNI)
, and an investment in its Denver newspaper partnership.
Revenue skidded 19% to $186.4 million.
Newspaper revenue fell 20% while profit dropped 22%. Online revenue, roughly
half of which is tied to print classified advertising, fell 20%. Online-only ad
revenue rose 38%.
At its television stations--which consist of three NBC affiliates, six ABC
stations and one independent channel--revenue fell 22% while profit plunged 82%.
The year-ago period benefited from Olympic advertising and heavy political
spending.
Scripps also owns character-licensing and feature-syndication businesses
operated by United Media, with properties such as the Peanuts and Dilbert
comics, and the Scripps Media Center in Washington, which includes the Scripps
Howard News Service. Revenue for the segment was flat and profit more than
doubled as costs dropped.
Scripps shares closed at $6.31 and didn't trade premarket.
-By Mike Barris, Dow Jones Newswires; 212-416-2330; mike.barris@dowjones.com
(END) Dow Jones Newswires
11-05-090821ET
Copyright (c) 2009 Dow Jones & Company, Inc.
|