Tribune Co.’s third-quarter results reflected profit pressures pinching the media concern’s publishing and broadcast units, as well as the financial drag of a costlier payroll at the company’s Chicago Cubs.
On a net basis, Tribune’s earnings fell 23 percent, to $182.3 million, or 53 cents a diluted share, from the year-earlier period’s $236.8 million, or 71 cents.
Both quarters were skewed by non-operating special items. Excluding the effect of those items, Tribune’s per-share earnings inched up to 48 cents from 46 cents a year earlier.
“Despite a challenging advertising environment in the third quarter, Tribune achieved solid revenue growth in both our newspaper and television businesses,” said Dennis FitzSimons, Tribune’s president and chief executive. “In the fourth quarter,” he continued, “we expect revenues to grow and expenses to be flat, setting the stage for a strong 2004.”
Although the latest results fell 2 cents short of the 50 cents a share analysts had been anticipating, Tribune shares rose 9 cents in New York Stock Exchange trading Thursday, to close at $48.50.
“Investors focus more on the adjusted number,” said John Janedis, a publishing analyst with Banc of America Securities. “Revenues were in line with expectation, and while earnings were slightly low, that had more to do with the timing of expense recognition than a change in the fundamental story, which is still intact.”
At Tribune’s publishing group, firming advertising markets helped boost revenue by 2 percent, to $966.4 million, but expenses, including higher newsprint prices, rose at a faster clip. Operating profit for the group declined 3.3 percent, to $192.6 million.
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At Tribune’s broadcasting and entertainment segment, revenue climbed 6.5 percent, to $419.1 million, but operating profit dropped 2.1 percent, to $133.7 million. Operating expenses were higher for the TV group and also at its radio/entertainment division, where operating expenses rose “primarily due to higher player compensation for the Chicago Cubs and increased program costs at Tribune Entertainment,” the company reported.
Among other media companies:
– The New York Times reported Thursday a 15 percent decline in third-quarter earnings despite higher revenue, as the company’s costs rose, particularly for newsprint and health benefits.
The company earned $50.1 million in the three months ending in September, compared with $59 million in the same period a year ago.
Per-share earnings were 33 cents, a penny better than Wall Street analysts had been expecting. The company earned 38 cents per share in the same period last year.
Shares were up $1.40, at $47.09, in NYSE trading.
– Media General, which owns newspapers and TV stations, reported a 61 percent drop in third-quarter earnings. .
For the quarter ending Sept. 28, the Richmond, Va.-based company earned $3.7 million, or 16 cents a share, which included a non-cash charge of $8.1 million related to an accounting change. A year ago, Media General earned $9.5 million, or 41 cents per share.
Revenue rose 2.6 percent, to $205.1 million.