NEW YORK - Media General's total operating costs for 2008 are expected to close at 7 percent in 2008 year-over-year, Media General's President and CEO Marshall Morton announced at the 36th Annual UBS Global Media and Communications Conference Wednesday.

"Our goal is to reduce costs an additional 2 percent in 2009, compared to 2008," Morton said.

The company has divested several non-core assets, including its one-third interest in SP Newsprint. It also sold several television stations. "Asset sales are being redeployed to reduce debt," according to the company.

It has decreased its dividend from 23 cents per share to 12 cents in September, which will lead to US$2.5 million in debt reduction in 2008 and $10 million in 2009.

"There is no profit sharing or incentive compensation for 2008," Morton said at the UBS conference.

Media General has been working on improving the overall efficiency and effectiveness of its operations, by outsourcing and centralising the newspaper operations. "We continued to consolidate printing facilities from 25 to 11 with eight consolidations in the last three years," he said.

The company's workforce has been reduced by 17 percent since the beginning of 2007.

John Schauss, vice president of Finance and CFO said that the Interactive Media Division is focused on expanding its Web-First/Continuous News initiative, as well as enhancing mobile delivery with new advertising applications. "These initiatives will help our Interactive Media Division achieve its 2009 profit goal of nearly $5 million," he said.

In terms of the Broadcast Division, the company is focused on improving market share and driving new business development next year. Cable retransmission fees will by estimate contribute nearly $13 million next year.

DTV Mobile will bring in new revenue, extend its viewership and attract younger viewers, which is expected to be launched in late 2009 or early 2010, Schauss said.

The Publishing Division is now finding new ways to reach audiences through both print products and new products in partnership with the group's new Interactive Media Division.

"The division is also identifying additional opportunities to better utilise our printing assets and distribution networks to provide both print and distribution services to other newspaper and content providers," Schauss said.

Morton said that when Florida's general economic climate improves, the impact will be significant to the company, as much of its operations are located in the state.

"In the meantime, we're successfully building new audiences that advertisers want to reach, and we are doing so online, with targeted print products, and with local television programming," he said at the UBS conference.