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Tribune Revenues Down 3.6% in April
Publishing Advertising Revenues Decline
10.3%
Television Revenues Down 1.1%
CHICAGO,
May 14, 2007 -- Tribune Company
(NYSE: TRB) today reported its summary of revenues and
newspaper advertising volume for period 4, ended
April 29. Consolidated revenues for the period were $399
million, down 3.6 percent from last year’s $414 million.
Publishing revenues in April were $279 million compared
with $305 million last year, down 8.6 percent. Advertising
revenues decreased 10.3 percent to $217 million, compared
with $242 million in April 2006.
- Retail advertising revenues decreased
6.8 percent as weakness in the specialty merchandise, home
furnishings and department store categories was partially
offset by strength in hardware/home improvement. Preprint
revenues, which are principally included in retail, were
down 8 percent. Retail revenues were adversely impacted by
the shift of Easter advertising from period 4 in 2006 to
period 3 in 2007.
- National advertising revenues declined 8.2 percent;
weakness in the financial and auto categories was partially
offset by strength in movies.
- Classified advertising
revenues decreased 14.9 percent. Real estate fell 20 percent
with over half of the decline due to weakness in the Florida
markets. Real estate fell 20 percent with significant declines
in the Florida markets due to difficult year-over-year
comparisons. Interactive revenues, which are primarily
included in classified, were $21 million, up 20 percent,
due to growth in all categories.
Circulation revenues were down
7.2 percent due to selective discounting in home delivery
and lower single-copy sales.
Broadcasting and entertainment group revenues in April increased
10.2 percent to $121 million compared with $110 million last
year primarily due to more Cubs home games. Television revenues
fell 1.1 percent; a significant decrease in political advertising
as well as weakness in restaurant/fast food and retail was
partially offset by strength in automotive and movies.
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Important Additional Information Regarding the Merger and
the Tender Offer will be filed with the SEC:
In connection with the proposed
merger transaction, Tribune Company will file a proxy statement
and other documents with the Securities and Exchange Commission
(the “SEC”).
BEFORE MAKING ANY VOTING DECISION WITH RESPECT TO THE PROPOSED
MERGER TRANSACTION, INVESTORS AND SECURITY HOLDERS ARE URGED
TO READ THE PROXY STATEMENT AND OTHER RELEVANT MATERIALS
WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION. Investors and security holders may obtain a
free copy of the proxy statement (when available) and other
documents filed by Tribune with the SEC at the SEC’s
website at http://www.sec.gov. The definitive proxy statement
and other relevant documents may also be obtained free of
charge on Tribune’s website at www.tribune.com or by
directing a request to Tribune Company, 435 North Michigan
Avenue, Chicago, IL 60611, Attention: Investor Relations.
You may also read and copy any reports, statements and other
information filed by Tribune with the SEC at the SEC public
reference room at 450 Fifth Street, N.W. Room 1200, Washington,
D.C. 20549. Please call the SEC at 1-800-SEC-0330 or visit
the SEC’s website for further information on its public
reference room.
Tribune Company and its directors
and executive officers may be deemed to be “participants” in the solicitation
of proxies from the shareholders of Tribune in connection
with the proposed merger transaction. Information about Tribune
and its directors and executive officers and their ownership
of Tribune common stock is set forth in the proxy statement
for Tribune’s Annual Meeting of Shareholders, which
Tribune is required to file with the SEC. Shareholders and
investors may obtain additional information regarding the
interests of Tribune Company and its directors and executive
officers in the merger transaction, which may be different
than those of Tribune’s shareholders generally, by
reading the proxy statement and other relevant documents
regarding the merger transaction, which will be filed with
the SEC.
This press release is for informational
purposes only and is not an offer to buy or the solicitation
of an offer to sell any shares of Tribune’s common stock. The solicitation
of offers to buy Tribune’s common stock is being made
pursuant to the offer to purchase and related materials that
the company has sent to its shareholders. Shareholders should
read those materials carefully because they contain important
information, including the various terms and conditions of
the offer. Shareholders can obtain copies of the offer to
purchase and related materials filed by the company as part
of the statement on Schedule TO on April 25, 2007 through
the SEC’s internet address at http://www.sec.gov without
charge. Shareholders can also obtain copies of the offer
to purchase and related materials, filed with the SEC (excluding
exhibits), without charge from the company or by written
or oral request directed to Innisfree M&A Incorporated,
501 Madison Avenue, New York, New York 10022, telephone number
1 (877) 825-8621 (banks and brokerage firms call collect
(212) 750-5833).
Forward-Looking Statements
This press release contains certain comments or forward-looking
statements that are based largely on the company’s
current expectations and are subject to certain risks,
trends and uncertainties. You can identify these and other
forward looking statements by the use of such words as “will,” “expect,” “plans,” “believes,” “estimates,” “intend,” “continue,” or
the negative of such terms, or other comparable terminology.
Forward-looking statements also include the assumptions
underlying or relating to any of the foregoing statements.
Actual results could differ materially from the expectations
expressed in these statements. Factors that could cause
actual results to differ include risks related to the transactions
being consummated; the risk that required regulatory approvals
or financing might not be obtained in a timely manner,
without conditions, or at all; the impact of the substantial
indebtedness incurred to finance the consummation of the
tender offer and the merger; the ability to satisfy all
closing conditions in the definitive agreements; difficulties
in retaining employees as a result of the merger agreement;
risks of unforeseen material adverse changes to our business
or operations; risks that the proposed transaction disrupts
current plans, operations, and business growth initiatives;
the risk associated with the outcome of any legal proceedings
that may be instituted against Tribune and others following
announcement of the merger agreement; and other factors
described in Tribune’s publicly available reports
filed with the Securities and Exchange Commission ("SEC"),
including the most current annual 10-K report and quarterly
10-Q report, which contain a discussion of various factors
that may affect Tribune’s business or financial results.
These factors, including also the ability to complete the
tender offer or the merger, 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,
or for changes made to this document by wire services or
Internet service providers. Tribune’s next quarterly
10-Q report to be filed with the SEC may contain updates
to the information included in this release.
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TRIBUNE (NYSE:TRB) is one of the
country’s
top media companies, operating businesses in publishing,
interactive and broadcasting. It reaches more than 80 percent
of U.S. households and is the only media organization with
newspapers, television stations and websites in the nation’s
top three markets. In publishing, Tribune’s leading
daily newspapers include the Los Angeles Times, Chicago Tribune,
Newsday (Long Island, N.Y.), The Sun (Baltimore), South Florida
Sun-Sentinel, Orlando Sentinel and Hartford Courant. The
company’s broadcasting group operates 23 television
stations, Superstation WGN on national cable, Chicago’s
WGN-AM 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. |
