Dallas-based A. H. Belo Corporation posts First Quarter 2008 loss

by PegNews wire

DALLAS — A. H. Belo Corporation today reported first quarter revenues of $160.2 million, a net loss of $8.7 million.

Robert W. Decherd, chairman, president and Chief Executive Officer, said, "A. H. Belo is navigating through a challenging operating environment, but I am confident about the quality of our markets long-term, the strengths of AHC's brands, and our ability to continue to transform AHC in an Internet-centric media world."

Total revenue decreased 8.8 percent in the first quarter versus the prior year. Advertising revenue, including print and Internet revenue, was down 12 percent. Advertising revenue, including print and Internet revenue, declined 26 percent at The Press-Enterprise in Riverside, California one of the hardest-hit real estate markets in the nation. The Press-Enterprise's performance had a significant impact on the Company's total revenue.

AHC had over $12 million in Internet revenue in the first quarter, which accounted for 7.5 percent of AHC's total revenues. Circulation revenue increases of 12 percent at The Dallas Morning News contributed to AHC's overall increase in circulation revenue of 5.4 percent for the quarter.

In the first quarter, total newspaper expense decreased by $5.3 million or 3.5 percent over the same period last year. This decrease included a $2.9 million drop in newsprint expense versus the prior year, with approximately $0.6 million of the decline resulting from a lower average cost per ton and approximately $2.3 million from lower consumption.

AHC predicts that weak economic trends suggest that the company is likely to see a decline in advertising revenue throughout 2008. A principal driver of this revenue decline will likely continue to be The Press-Enterprise.

The company is discontinuing "bonus days" and additional third party circulation to eliminate non-value-added circulation and reduce newsprint expense. The company may be subject to additional newsprint price increases during 2008. AHC will complete its web width reduction project in early 2009, which reduces newsprint consumption going forward.

Source: Belo