Newspaper companies report first quarter results

Tribune Co.'s investment losses offset improved revenue

CHICAGO (AP) - Tribune Co.'s first-quarter earnings were weighed down by investment losses that offset improvements in newspaper advertising revenue, the company reported. 

Tribune earned $120.7 million, or 35 cents per share, down from $141.2 million, or 41 cents per share, in the period a year earlier. The results included a 5 cent per share loss on marking down the value of derivatives holdings and a related Time Warner investment. 

Excluding non-operating items, the earnings were 40 cents a share - 3 cents shy of the estimate of analysts surveyed by Thomson First Call. Revenues rose 3 percent to $1.33 billion from $1.29 billion. 

Tribune, whose holdings include 13 daily newspapers, more than two dozen television stations and the Chicago Cubs, said its newspaper group recorded $1 billion in operating revenues, up 3 percent from a year earlier. Tribune's Pennsyvlania holdings include The (Allentown) Morning Call and WPMT-Fox43 television in York.

Retail advertising revenues rose 5 percent for the quarter and help-wanted ads generated 10 percent higher revenue. 

But operating profit from the division, Tribune's largest, dipped 4 percent amid higher newsprint prices, higher retirement and other benefit expenses and spending on new publications. 

Newsprint cost per ton was 9 percent higher than in the first quarter of 2003, affecting expenditures at its newspapers, which include the Chicago Tribune, Los Angeles Times and Newsday. 

The company's television division turned in a solid quarter, with revenues increasing 6 percent to $306 million and operating profit climbing 9 percent to $102 million. 

Knight Ridder reports 10 percent increase in profit

SAN JOSE, Calif. (AP) - Knight Ridder, the nation's second-largest newspaper publisher, reported a 10 percent increase in first-quarter profits on stronger advertising results. 

The company, whose 31 newspapers include The Philadelphia Inquirer, Philadelphia Daily News, the (State College) Centre Daily Times and The (Wilkes-Barre) Times Leader, earned $55.9 million in the three months ending in March, up from $50.7 million in the period last year. 

Per-share results came in at 70 cents, up from 62 cents a year ago and three cents above the estimate of analysts surveyed by Thomson First Call. 

Revenues in the latest quarter edged up 2 percent to $712.3 million from $699.3 million, while advertising revenues rose 2 percent to $547.9 million. 

CEO Tony Ridder said in a statement that the quarter "concluded strongly," with a 6 percent gain in advertising revenues in March, including a 9 percent gain in the Philadelphia market, and other gains nearly as large in some other markets. 

But he said that while it was "tempting to say that the 'recovery' has taken hold," he cautioned that the company's newspapers in San Jose, Calif., and Akron, Ohio, showed declines in the quarter. 

Knight Ridder's total costs rose 2 percent in the quarter, including a 4 percent rise in newsprint. 

Journal Register posts 5 percent increase in profit

TRENTON, N.J. (AP) - Journal Register Co. posted a 5 percent increase in first-quarter profit as higher advertising revenue more than offset increased costs for newsprint and flat circulation revenues. 

The company said net income for the period was $10.3 million, or 24 cents per share, up from $9.8 million, or 24 cents per share, in the year-ago quarter. 

Journal Register owns more than 70 publications that are members of the Pennsylvania Newspaper Association, several of which are concentrated in its Greater Philadelphia cluster.

The latest results matched the 24 cents-per-share forecast of analysts surveyed by Thomson First Call. 

Revenues rose 3 percent to $99.2 million, from $96.6 million. 

Total advertising revenue grew 4 percent, to $72.7 million. Retail edged up 2 percent, led by big jumps in the company's clusters in New York state and the Philadelphia area. Classified ad revenues were up 7 percent and national rose 5 percent. 

Journal Register publishes 23 dailies in New England, upstate New York and the Cleveland and Philadelphia areas. It also produces 237 other publications. 

Lee says strong ad sales leads to second-quarter gains

DAVENPORT, Iowa (AP) - Lee Enterprises Inc. posted second-quarter earnings of $15.8 million, up 8.1 percent from a year ago behind strong advertising sales. 

Earnings per share for the quarter were 35 cents, up from 33 cents or 6.1 percent. 

Advertising revenue was $116.5 million, up 6.6 percent from $109.3 million, the company reported. 

Revenue from circulation was $32.5 million, up 0.4 percent. 

Lee Enterprises owns 38 daily newspapers and joint interest in six others, along with associated online services. Lee also owns nearly 200 weekly newspapers, shoppers and classified and specialty publications. 

McClatchy Co. reports slightly higher earnings

SACRAMENTO, Calif. (AP) - McClatchy Co. reported slightly higher first-quarter earnings as increasing advertising revenues and an acquisition lifted results. 

Net income for the period was $28.9 million, or 62 cents per share, compared with $25.3 million, or 55 cents a share, a year earlier. 

The results beat the forecast of 59 cents a share by analysts surveyed by Thomson First Call, as well as the company's January forecast of 56 cents to 58 cents per share. 

Revenues rose 6 percent to $272.3 million from $257 million, as advertising revenues rose 7 percent. 

The results include the Merced Sun-Star and five nearby non-dailies, which McClatchy purchased on Jan. 7. Excluding those results, total revenues were up 4 percent and advertising revenues rose 6 percent. 

CEO Gary Pruitt called the first quarter results "most encouraging," and projected earnings would range between 85 and 87 cents per share in the second quarter, excluding a one time write-off related to debt financing. 

McClatchy publishes 12 daily and 18 non-daily newspapers in California, Minnesota, the Carolinas and the Pacific Northwest, including the Anchorage Daily News in Alaska, The Star Tribune of Minneapolis and The Sacramento Bee.

Media General says profit rose 30 percent

RICHMOND, Va. (AP) - Media General said its first-quarter profits rose 30 percent, reflecting strong revenue growth in its publishing and broadcast divisions. 

Earnings for the period were $9.1 million, up from $7 million in the year-ago quarter. Per-share earnings were 38 cents, up from 30 cents a year ago and beating the estimate of 31 cents from analysts surveyed by Thomson First Call. 

Chairman and chief executive J. Stewart Bryan III said the results reflected robust advertising sales in March, and exceeded the company's expectations. 

The company cited growth in classified ads, including help-wanted ads. The broadcast division's results reflected higher spending on presidential campaign ads, robust growth in automotive ads and strong Super Bowl ads at its 16 CBS affiliates. 

First-quarter results also were boosted by lower interest expenses, coupled with improved results from SP Newsprint, which is one-third owned by Media General. 

Revenues rose 6 percent to $208.2 million from $196.1 million. 

For the second quarter, Media General said it expects publishing revenue to grow by about 5 percent, reflecting improvement in employment advertising, as well as retail and national ads. Broadcast advertising is expected to rise about 9 percent. 

Dow Jones net falls despite rise in ads

NEW YORK (AP) - Dow Jones & Co., publisher of The Wall Street Journal, reported that its net income for the first quarter fell 73 percent from a year ago, when it recorded a large non-cash gain. 

Revenue rose 12 percent in the period partly because of an improving advertising climate, but the company still said that advertising remained far below normal levels and the company would keep a careful eye on costs. 

Dow Jones earned $17.8 million, or 22 cents per share, in the three months ending March 31, down from $66.9 million, or 82 cents per share, in the period a year ago. 

Dow Jones' Ottaway Newspapers subsidiary publishes The (Sunbury) Daily Item, The Danville News, the (Stroudsburg) Pocono Record and the Eastern Poconos Community News.

E.W. Scripps Co. earnings up 34 percent

CINCINNATI (AP) - The E.W. Scripps Co.'s first-quarter earnings increased by 34 percent to $70.5 million from $52.7 million a year ago, driven by higher revenues from the company's cable television channels and broadcast TV stations. 

The company said it earned $70.5 million, or 86 cents per share, in the quarter, compared with $52.7 million, or 65 cents per share, a year ago. 

The income for the latest quarter included an after-tax gain on investments of $9.5 million, or 12 cents per share. Excluding that amount, the 74 cents per share profit exceeded the 71-cent prediction of analysts surveyed by Thomson First Call. 

Increased revenues from Scripps' cable TV channels and political advertising on broadcast television led the company's earnings. 

Profits at Scripps Networks increased 50 percent to $62.3 million. Scripps Networks includes the Home & Garden Television, Fine Living, Food Network and DIY - Do-It-Yourself cable channels. 

Profits of the company's 10 broadcast TV stations increased by 10 percent to $17.2 million. That included political advertising revenues of $4.2 million, compared with $200,000 a year ago. For comparison purposes, political ad revenues at Scripps stations during the first quarter of the 2000 presidential election year were $1.7 million. 

Profits from Scripps' 21 daily newspapers collectively declined by almost 7 percent to $59.1 million, even though revenues increased 3.4 percent to $179 million. Higher costs for employee benefits and newsprint reduced the profits, Scripps said. 

In addition to the TV stations, cable channels and newspapers, the company operates four cable and satellite television programming services; the Shop at Home retailing channel, Scripps Howard News Service and United Media, which licenses and syndicates the Peanuts and Dilbert comic strips. 

Pulitzer earnings rise on stronger ad, classifieds revenue

ST. LOUIS (AP) - Strong advertising revenue, spurred in part by a new direct-mail initiative, and improved performance in classified ads helped Pulitzer Inc. earnings rise 14 percent in the first quarter, the company reported. 

St. Louis-based Pulitzer owns 14 daily newspapers, including the St. Louis Post-Dispatch and the Arizona Daily Star in Tucson, along with the Suburban Journals of Greater St. Louis and Web sites affiliated with its newspapers. 

The company earned $8.1 million, or 37 cents per diluted share, in the period, up from earnings of $7.1 million, or 33 cents per diluted share, in the first quarter of 2003. 

The performance was one cent short of the 38-cent increase forecast by analysts surveyed by Thomson First Call. 

Revenues rose 5 percent to $102.7 million from $98.2 million in the previous year. Operating income declined 4 percent to $16.2 million, largely due to expenses related to the launch of a new direct mail product in St. Louis, higher newsprint prices and increased health care costs. 

Advertising revenue rose 6 percent with especially strong growth of 10 percent during March. Classified ad revenue rose 11 percent for the quarter, led by growth in help-wanted ads, which rose 31 percent.