Q2 Revenue, Earnings Up For Journal
July 21, 2010 at 11:42 AM (PT)
JOURNAL COMMUNICATIONS second-quarter revenue from radio stations increased 3.5% to $17.7 million, boosting the company's broadcasting division to a 7.5% gain ($47 million), while overall revenue from continuing operations increased 0.1% to $104.3 million, knocked back by a 4.1% drop in publishing revenue and a 10% decrease in printing services revenue. Basic and diluted net earnings rose from 11 to 14 cents/share ($8.1 million) for Class A and B common stock.
The performance led the company to announce that it will give employees, who took a pay cut last year, a 2% bonus and will reinstate its 401(k) retirement fund match beginning next year.
"Improving revenue trends combined with permanent cost reduction initiatives taken over the last year led to another quarter during which we increased our operating earnings and our operating margin from the prior year. We also reduced our debt during the quarter by another $16.9 million," said Chairman/CEO STEVE SMITH. "While the economic recovery seems to be somewhat uneven across the country, we were encouraged by the operating results for the quarter at most of our local markets including Sun Belt markets like NEVADA and FLORIDA.
"In the second quarter, Broadcast revenue increased as automotive advertising was up 31% compared to the prior year and we recorded $1.9 million in political and issue advertising. The rate of decline in advertising revenue moderated in our Publishing business, down 8.5% in the second quarter versus down 13.0% in the first quarter compared to the prior year.
"As we look ahead, developing our digital business and enhancing our local market content in order to grow audiences and build new advertising revenues remain a priority for us."