Wednesday, February 13, 2008

Dallas-based Belo reports unprofitable fourth quarter, fiscal year 2007

By Pegasus News wire

DALLAS — Belo Corp. today reported a net loss per share for the fourth quarter and full year 2007 of ($3.26) and ($2.57), respectively, compared with earnings per share of $0.50 and $1.26, respectively, for the fourth quarter and full year 2006. Fourth quarter net earnings and fourth quarter earnings per share were $33.1 million and $0.32 per share, respectively, and full year net earnings and full year earnings per share were $103.7 million and $1.01 per share.

Photo not provided by Belo Corp.

Belo is banking on its visionary online advertising ideas to stay afloat

Dunia A. Shive, Belo Corp.'s president and Chief Executive Officer, said, "The Television Group achieved outstanding performance in 2007, reporting record revenue even though 2007 followed the strong political spending of 2006, and the Newspaper Group made significant progress in transforming its business to compete in an increasingly Internet-centric environment."

Consolidated revenue for the fourth quarter of $407 million decreased 6.8 percent versus the fourth quarter of 2006, while full year 2007 revenue of $1.52 billion decreased 4.6 percent when compared to full year 2006.

Television Group total revenue decreased 2.4 percent in the fourth quarter due to significantly lower political revenue in 2007 versus the prior year. Total spot revenue decreased 5 percent in the fourth quarter and decreased 1.1 percent for the full year 2007. Fourth quarter and full year 2007 included political revenue of $8.4 million and $14.6 million, respectively, versus political revenue in the fourth quarter and full year 2006 of $31.6 million and $47 million, respectively. Online ad revenue for the Television Group's Web sites increased 43 percent in the fourth quarter and 41 percent for the full year.

Newspaper Group total revenue decreased 11 percent in the fourth quarter of 2007 with advertising revenue down 14 percent. Advertising revenue decreased 12 percent at The Dallas Morning News, 6 percent at The Providence Journal and 19 percent at The Press-Enterprise. Online advertising revenue associated with the Newspaper Group's Web sites increased 15 percent versus the fourth quarter of the previous year. For the full year, Newspaper Group total revenue decreased 10 percent with an 11 percent decrease in advertising revenue. Web site advertising revenue increased 20 percent.

Robert W. Decherd, A. H. Belo's chairman, president and Chief Executive Officer said, "We're only in a position to provide some general perspective on 2008 at this time, which depends on economic conditions during the year and related advertiser responses to consumer spending patterns. A. H. Belo's newspaper advertising revenues will be down in 2008 but not at the levels of decline experienced in 2007. Declines in Providence and Riverside especially will be more substantial than in Dallas/Fort Worth. Operating expenses will be flat or slightly lower than 2007 as long as newsprint prices do not exceed our assumptions."

Source: Belo Corp.

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