Dallas-based Belo posts lower third quarter profits, revenues

by PegNews wire

DALLAS — Belo Corp. today reported net earnings per share of $0.18 for the third quarter of 2007 as compared to $0.19 for the third quarter of 2006. The third quarter of 2007 included approximately $2.3 million in transaction costs related to the company's previously announced spin-off of its newspaper group.

Consolidated revenue totaled $364 million in the third quarter of 2007, a decrease of 3.2 percent versus the third quarter of 2006, with television revenue up 1.8 percent and newspaper revenue down 7.8 percent. The company posted $376.4 million in revenue at this time last year, a $13 million backpedal.

The company's total operating costs and expenses decreased 2.2 percent, benefiting from headcount reductions in 2006, lower pension expense related to the company's decision to freeze its pension plan effective March 31, 2007, lower newsprint expense from decreases in both consumption and price, and lower distribution expense related primarily to the reduced circulation perimeter of The Dallas Morning News.

Robert W. Decherd, Belo's chairman and chief executive officer, said, "Belo's results were highlighted by a third straight quarter of superior performance by the company's television group, strong growth in our online businesses and excellent expense management across the company. Belo's Newspaper Group results were affected by a soft advertising environment particularly at The Press-Enterprise in Riverside where Southern California housing and credit issues have impacted local economies. Despite lower revenues in Belo's Newspaper Group, both The Dallas Morning News and The Providence Journal delivered year-over-year EBITDA increases in the third quarter. In fact, The Dallas Morning News' EBITDA increased 26 percent in the third quarter, an improvement from its 21 percent year-over-year increase recorded in second quarter 2007."

The company's total debt at September 30, 2007 was $1.203 billion.

Source: Belo