Scripps, Belo, Post Co. and Journal Comm. see improved results

Posted by Leah McBride Mensching on March 2, 2010 at 4:20 PM

U.S. newspaper companies aren't exactly having an easy economic time, but as the global economy shakes off the recession, newspapers' negative results aren't as bad as years past, leading many to be upbeat about results, which are up by year-on-year comparisons, the Nieman Journalism Lab reported today.

E.W. Scripps reported a revenue drop of 18 percent in the fourth quarter of 2009 compared to the same period in 2008. "Scripps managed to present a negative as a positive," Nieman pointed out. The Wall Street Journal reported that the media company's shares rose to a 19-month high.

However, in the fourth quarter the newspaper division saw ad revenue down by 20 percent - an "improvement" compared to a drop of 27 percent in the third quarter.

Journal Communications Inc., made up by the Milwaukee Journal Sentinel, weeklies and a 12-state radio and television group, announced last month that its fourth quarter profit reached US$7.2 million, compared to losses the previous year, The Associated Press reported. However, revenue for the Sentinel was down 15.7 percent in the quarter, compared to the same time in 2008. Broadcast revenue was down 13.3 percent.

Yesterday, Belo Corp. announced it raised its outlook for spot revenue in the first quarter this year, thanks to the Winter Olympics and the Super Bowl in the United States. Shares were up more than 8 percent to a 52-week high, Reuters reported.

Meanwhile, A.H. Belo, the newspaper arm, saw the "lowest year-to-year declines in advertising revenue for the year" in the fourth quarter 2009, said CEO Robert Decherd, according to Nieman. However, total revenue decline was still at 15.3 percent. Yesterday, shares were up 8 percent to $7.28 in late morning trading, according to Reuters.

The Washington Post Co. announced Wednesday last week that its fourth-quarter profit increased to $82.2 million, or $8.71 a share, more than quadruple year-over-year. This gain is mostly due to a big reduction in accounting charges and the strong growth of its education division and the cable television business. The newspaper division was profitable after cutting employees, SFN reported last week.