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Tribune Updates Business Progess
at Media Week Conferences; Expects Record Earnings Per Share
for 2003
Expands Reach of Superstation
WGN
Sells Stake in Golf Channel CHICAGO,
December 11, 2003
-- Tribune
Company (TRB: NYSE) executives today updated business progress
at two media conferences in New York City, and said the company
expects to finish the year with record earnings per share,
excluding non-operating items. As part of its presentations,
the company also announced that it plans to extend the reach
of Superstation WGN by 7 million households over the next
four years, and that it has sold its stake in The Golf Channel
for $100 million. Company executives reviewed the company's 2003 financial
performance in presentations made at the annual UBS Warburg
and CS First Boston media conferences, and said Tribune's
combination of national scale and local focus positions
it well to compete in a crowded media marketplace.
"Our 2003 results again demonstrate
the strength of our media businesses," said Dennis FitzSimons,
Tribune president and CEO. "Operating cash flow will
be about $1.6 billion this year, with more than half
of that converting to free cash flow. That compares favorably
with many of our peers."
"Our scale pays off in a number of
ways," added
FitzSimons. "It
provides opportunities to offer viewers and readers broader
and deeper news coverage; it gives us access to the best
syndicated and off-net television programming; it allows
us to offer our advertising clients customized solutions;
and it affords us greater negotiating leverage to reduce
costs."
Don Grenesko, Tribune chief financial officer, said
that the company expects 2003 consolidated revenues to
be up 4 percent for the year. The company also anticipates
that consolidated cash expenses will be up approximately
3 percent, he said, following a 3 percent decrease in
2002.
"This combination of top-line growth
and cost control will again result in record earnings
per share in 2003," said
Grenesko.
For 2004, Grenesko expects revenues to increase about
6 percent, while consolidated cash expenses will be up
about 5.5 percent. About half of the expense increase
is due to higher retirement plan and newsprint costs.
Grenesko said the company would generate about $900 million
in free cash flow and low double-digit growth in earnings
per share, within the current range of analysts' estimates
for 2004.
Patrick Mullen, president of Tribune Broadcasting, reviewed
broadcasting results, and said the company recently sold
its 8.6 percent interest in The Golf Channel to Comcast
for $100 million. He also highlighted recent agreements
with cable and DBS providers that he said would extend
the reach of Superstation WGN by 7 million households.
"Growing the distribution of Superstation
WGN is one of Tribune Broadcasting's key strategies,"
said Mullen. "Since
2001, distribution has grown from 51 million to 58 million
subscribers, with more homes on the way."
Jack Fuller, Tribune Publishing president, said that
the company's publishing business has outperformed the
industry due to the strength of its newspaper franchises
and their presence in major markets.
"Tribune's retail growth has been
among the best in the industry," said Fuller. "The
company's auto and real estate classified categories
have posted record numbers; and national advertising
revenues continued to perform well all year due to strength
in the high-tech, auto manufacturers and financial categories."
Fuller added that while help-wanted advertising revenues
have been challenged across the media industry, Tribune
experienced its first year-over-year gain in the category
in 36 months in November. He also noted that online recruitment
partner CareerBuilder is well-positioned for an upturn
in recruitment, with new marketing agreements with AOL
and MSN that should increase traffic to well over 10
million unique visitors monthly.
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TRIBUNE (NYSE: TRB) is one of the
country's premier media companies, operating businesses
in broadcasting and publishing. It reaches more than
80 percent of U.S. households and is the only media organization
with television stations, newspapers and Web sites in
the nation's top three markets. In publishing, Tribune
operates 13 leading daily newspapers including the Los
Angeles Times , Chicago Tribune, Newsday and
Spanish-language Hoy , plus a wide range of
targeted publications. The company's broadcasting group
operates 26 television stations; Superstation WGN on
national cable; WGN-AM in Chicago; and the Chicago Cubs
baseball team. Popular news and information Web sites
complement Tribune's print and broadcast properties and
extend the company's nationwide audience. |
