Journal’s 2Q TV Revenue Dips 4.3%

Journal Communications Inc. today announced results for its second quarter ended June 29.

Broadcasting revenue (radio and TV) decreased 4.6% to $53.5 million compared to $56.0 million. Total broadcast political and issue advertising revenue was $0.7 million compared to $0.5 million. Broadcasting operating earnings of $9.7 million were down 14.1% compared to $11.3 million.

For the second quarter, revenue from television stations decreased 4.3% to $32.6 million compared to $34.0 million. Television political and issue advertising revenue was $0.6 million compared to $0.2 million.

Operating earnings from television stations decreased 24.4% to $4.6 million compared to $6.0 million.

The company said the decrease in operating earnings "largely reflects the declines in revenue at our Tucson, Ft. Myers/Naples, Milwaukee and Las Vegas stations." Overall, television operating expenses (including KPSE-LP that was acquired in January 2008) are essentially flat compared to last year.

For the second quarter, revenue from radio stations of $20.9 million was down 5.0% compared to $22.0 million. Operating earnings from radio stations of $5.1 million decreased 2.2% compared to $5.3 million, largely reflecting the declines in revenue partially offset by a 5.9% reduction in radio operating expenses.

The company as a whole posted second quarter revenue of $140.1 million, a decrease of 5% compared to $147.5 million. Earnings from continuing operations were $9 million compared to $12.7 million, a decrease of 29.1%.

Net earnings were $9 million. This compares to net earnings of $14.2 million in the second quarter of 2007, which included a $1.4 million gain from discontinued operations of certain clusters of our community newspapers and shoppers division.

"The economy continued to impact advertising revenues at Journal Communications during the second quarter," said Steven J. Smith, chairman and chief executive officer of Journal Communications. "While television revenue grew in markets like Palm Springs, Omaha, Boise and Lansing and radio revenue grew in Omaha, our larger growth markets continued to experience subdued advertiser spending. Publishing revenue remained soft overall, although our hyper-local community newspapers surrounding Milwaukee grew revenue in the quarter. We were also pleased to see continued increases in online advertising revenues at both the publishing and broadcast sites. Total online revenue was up 15.9% in the second quarter to approximately $4.7 million.

"Looking to the second half of the year, we anticipate positive revenue trends driven by political and issue and Olympics advertising spending at our television business.

"We believe our company is strong financially because we have maintained a solid balance sheet while prudently using capital to repurchase shares. We remain focused on diligent cost control. Broadcast headcount is down about 6% in 2008 from year end 2007."

"We continue to execute on our growth strategy to grow our total audience and expand our presence in our local markets. So far in 2008, Journal Broadcast Group formed a television duopoly in Palm Springs. We expect to close soon on the acquisition of the assets of KWBA-TV to form a television duopoly in Tucson, and on July 1, we announced an agreement to acquire the assets of KNIN-TV in Boise, subject to regulatory approval, to form another television duopoly in that growth market."

To read the company's press release, click here.