Media General Inc. on Thursday announced it lost US$85.5 million in the fourth quarter due to an impairment charge and a serious publishing profit drop on depressing ad sales. It also added that it was suspending its dividend, The Associated Press reported.

The company's shares dropped 68 cent, or 24 percent, to close at $2.16.

The loss for the period ending Dec. 28 equaled $3.86 per share, compared to a profit of $9.6 million, or 43 cents a share, in the same period one year ago.

Revenue decreased about 12 percent from $235 million to $207 million, according to the AP article posted on Google News.

The publisher said the loss included a $130.4-million non-cash impairment charge, primarily a write-down value of Federal Communications Commission licenses and network-affiliation.

"The market's perception of media stocks has become negative," said Chief Financial Officer John A. Schauss in a conference call.

Publishing profits plummeted 68 percent to $8.5 million year-over-year, the AP reported.