Belo reports third quarter loss, classified revenue down 40+%
At A.H. Belo Corp. total revenue decreased 17.5 percent in the third quarter versus Q308, with combined print and Internet advertising revenue down 27 percent. Internet revenue accounted for 7.6 percent of all dollars earned for the quarter. Disregarding online classified revenue, Web ad dollars increased 15.6 percent
In the third quarter, circulation revenue rose 11.6 percent due to price increases at both The Dallas Morning News and The Providence Journal, though subscriptions dipped more than 20 percent in Dallas, Newsprint expense fell almost $10 million, to less than half its 2008 cost. Overall corporate and non-operating expenses declined $3.9 million, a 36.6 percent drop.
Belo’s closure of a Dallas, TX packaging plant, with consolidation to a plant in Plano TX by early 2010, resulted in a $20 million cash impairment charge.
“The year-to-year percent decline in advertising revenue eased slightly in the third quarter when compared to the first and second quarters of 2009 due to the improved performance of The Dallas Morning News,” said Robert W. Decherd, Belo chair, president and CEO, in the announcement. “For the third quarter, A. H. Belo successfully managed costs and increased consolidated EBITDA by $6.4 million versus the second quarter of 2009 and $22.5 million versus the third quarter of 2008. We are pleased with the recent improvements in the quantity and quality of The Morning News’ journalistic products and the related opportunity to increase circulation pricing.
