NEW: ProJo’s Parent Company - Dallas-based A.H. Belo Announces 2nd Quarter
Thursday, July 28, 2011
The parent company of the Providence Journal, the Dallas, Texas-base A.H. Belo, announced a net loss of $6.8 million - more than 30 times the Company's loss in the same period in 2010. Advertising revenue took a big hit - print and digital revenues combined were off 9.3%.
According to a statement in Belo's press release, Robert W. Decherd, chairman, president and Chief Executive Officer, said, "Second quarter Adjusted EBITDA met our expectations. Total revenue decreased 5.8 percent compared to 2010, and business leaders across the Company responded to inconsistent advertising patterns with targeted expense reductions. We continue to anticipate full-year 2011 Adjusted EBITDA in the range of $45 million to $50 million, which assumes no gains from real estate dispositions. "
As of June 30, 2011, the Company had approximately $50 million of cash and cash equivalents, had no borrowings outstanding under its bank credit facility, and remained in compliance with bank covenants.
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Total revenue for Belo was $114.5 million in the second quarter of 2011, a decrease of 5.8 percent compared to the prior year.
Display advertising revenue decreased 11.0 percent to $26.4 million.
Preprint revenue decreased 6.0 percent to $20.5 million.
Classified revenue decreased 12.8 percent to $14.3 million.
Digital revenue decreased $8.7 million, a decrease of 5.2 percent.
Advertising revenue from niche publications, which is spread among the display, preprint, classified and digital revenue figures above, increased 3.0 percent compared to second quarter of 2010.
Circulation Decrease
Circulation revenue decreased 1.6 percent to $34.9 million. A 0.4% increase at The Dallas Morning News was offset by decreases at The Providence Journal and The Press-Enterprise.
Printing and distribution revenue increased 6.7 percent to $9.7 million due primarily to increases in printing and distribution revenue in Providence.
Cost of Newsprint a BIG HIT
While the newspaper company printing was functionally stagnant, Belo's newsprint expense in the second quarter was $10.9 million, an increase of 18.7% compared to the prior year. Newsprint cost per metric ton increased 17.1 percent. The average purchase price per metric ton for newsprint increased 11.3 percent.
As of June 30, 2011, A. H. Belo had approximately 2,300 full-time equivalent employees, a decrease of 6.4 percent compared to the prior year. Recently, it was learned that the Providence Journal had
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