Belo’s Specialty Publications Reach Profitability
Belo Corp. reported that its Newspaper Group's new products, principally Quick and Al Día at The Dallas Morning News and the d at The Press-Enterprise in Riverside, grew impressively in the second quarter, generating US $4.2 million of revenue, a 54 percent increase over revenue of $2.7 million in the second quarter of 2004.
Expenses associated with the new products decreased from $4.6 million in the second quarter of 2004 to $3.9 million in the second quarter of 2005. Earnings from operations related to these new products were $254,000 in the second quarter of 2005 versus a $2.0 million loss in the second quarter of 2004. The second quarter of 2005 marked the first time that the new products contributed positive earnings from operations and EBITDA to Newspaper Group segment results.
Robert W. Decherd, Belo's chairman, president, and chief executive officer, said, "All in all, we were pleased with Belo's second quarter financial performance. Within the Newspaper Group, revenues for The Providence Journal and The Press-Enterprise increased by seven percent on a combined basis versus the prior year. Revenues at The Dallas Morning News improved significantly relative to the first quarter of 2005. Innovative new products launched by the Newspaper Group in late 2003 are well ahead of schedule and contributed significantly to Newspaper Group revenue growth. Collectively, these new products reported positive earnings from operations and EBITDA in the second quarter.”
Newspaper Group total revenue increased 2.5 percent in the second quarter of 2005, with flat revenues at The Dallas Morning News, a 4.8 percent increase at The Providence Journal and an increase of nine percent at The Press- Enterprise in Riverside. Advertising revenues for the Newspaper Group increased 2.7 percent compared with the second quarter of 2004. Excluding classified automotive revenue, which decreased 12.4 percent, advertising revenues would have increased about 4.4 percent. Revenues associated with the Newspaper Group's Web sites increased almost 40 percent in the second quarter.
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