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Tribune
Revenues Increase 3.2% in May
Publishing group implementing
expense control initiatives CHICAGO,
June 7, 2004 -- Tribune Company (NYSE: TRB)
today reported its summary of revenues and newspaper advertising
volume for period 5, ended May 23, 2004 . Consolidated revenues for the period were
$467 million, up 3.2 percent from last year's $452 million.
Based on current trends, the company expects consolidated
revenue growth for the full year to be in the 4 percent range.
Slower than anticipated growth within the publishing group
will be offset by expense reductions. Actions being taken
include staff reductions, newsprint conservation programs
and reduced spending levels in all departments.
As a result, consolidated expense growth in the second half
will be approximately
3 percent, down from previous expectations of a 5.5 percent increase.
"Although help wanted advertising is
improving month-over-month, and preprints year-to-date are
delivering strong growth, other advertising categories are
not meeting the aggressive plans we had for the year," said
Jack Fuller, president of Tribune Publishing. "The shortfall
is limited to a few newspapers, including the Los Angeles
Times."
The cost savings initiatives will result in a one-time pretax
charge of $10-$15 million which is expected to be taken in
the second quarter. Excluding this charge and non-operating
items, second quarter diluted earnings per share is expected
to be within the current range of analysts' estimates. On
the same basis, full year diluted EPS is expected to increase
year-over-year in the low double digits.
Period 5 Summary
Publishing revenues in May were $325 million, 2.7 percent
higher than last year's
$317 million. Advertising revenues increased 4.1 percent to $255 million, compared
with $245 million in May 2003. Total advertising inches were up 3 percent,
while preprint pieces increased 9 percent.
Retail, national and classified advertising revenues discussed
below include both print and interactive revenues for 2004
and 2003.
- Retail advertising revenues
were flat as strength in food and other retail categories
were offset by weakness in department stores, home furnishings
and electronics. Preprint revenues, which are principally
included in retail, were up
4 percent. Full run retail linage decreased 2 percent in the period.
- National advertising revenues
rose 2.7 percent as strength in the financial and travel/resorts
categories was offset by lower movies/entertainment and
hi-tech advertising. Full run national volume was up
5 percent.
- Classified advertising
revenues rose 11 percent due to gains in help wanted
and real estate, which were up 25 percent and 14 percent,
respectively. Auto classified advertising fell 1 percent.
Full run classified volume was up 2 percent in the period.
Interactive revenues, which are primarily included in classified,
were $10 million, up 43 percent, due to strength in all
categories.
Broadcasting and Entertainment group revenues in May rose
4.3 percent to $141 million, compared with $136 million in
May 2003. Television revenues grew 2.4 percent as strength
in the telecom and education categories was partially offset
by decreases in movies, soft drinks and retail. The Chicago
Cubs benefited from additional home games in the period and
strong attendance.
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This press release contains certain
comments that are based largely on the company's current
expectations and are subject to certain risks, trends and
uncertainties. Such comments and statements should be understood
in the context of Tribune's publicly available reports
filed with the SEC, including the most current 10-Q and
10-K that contain a discussion of various factors that
may affect the company's business. These factors could
cause actual future performance to differ materially from
current expectations.
Tribune Company is not responsible for updating the information
contained in this press release beyond the published date,
nor for changes made to this document by wire services or
Internet service providers. More information on Tribune is
available on the Internet at www.tribune.com.
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 websites in the nation's top three markets.
In publishing, Tribune operates 14 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 websites complement Tribune's
print and broadcast properties and extend the company's nationwide
audience. |
