US: Tribune posts 81% rise Q4 profit

Posted by Jean Yves Chainon on February 9, 2007 at 10:57 AM

Tribune Co., despite its difficulties in finding bidders, recorded an 81% rise in a fourth quarter profits. Excluding December’s extra week though, all major indicators including advertising, circulation and total revenues had declined.

Tribune registered a net profit of $239.1 million.

Tribune shares were seemingly unaffected by the good fourth quarter results, as they fell three cents, closing at $30.92.

"They had a tough quarter like everybody else," said media analyst Edward Atorino of The Benchmark Co. "But they're not in trouble in any way. They could grow their way out of this if they don't get the price they want on a transaction."

Newspapers’ classified ad revenue stagnated, but ad revenues as a whole rose 4%, and operating revenues rose 4% to $1.1 billion.

Operating revenue for broadcasting and entertainment, on the other hand, rose 11% to $356 million.

Scott Smith, president of the publishing division, announced initiatives for 2007 and 2008, which included continued outsourcing, transition into new technology, and consolidating back-office functions.

Smith also said he thought circulation trends would improve this year, citing improved results by Tribune’s two main dailies, the Los Angeles Times and the Chicago Tribune.

Source: Yahoo News