Monday, June 18, 2007

JS continues to reel

The latest numbers for JS revenue are out and they are scary bad. Newspapers all over the country are offering buyouts and laying off staff. It's a wonder that the JS hasn't done those things before now. Bigger wonder: how long can the paper hold out before it joins the staff-cutting crowd? Here it is, straight from Journal Communications' own press release.

MILWAUKEE, WI – June 18, 2007 – Journal Communications, Inc. (NYSE:JRN) announced today that for the fifth period ended May 27, 2007, total revenues for its Publishing and Broadcast groups of $43.47 million decreased 5.3% compared to $45.91 million reported for the fifth period ended May 21, 2006. For the fifth period 2007, advertising revenues of $36.43 million decreased 6.5% compared to $38.95 million for the 2006 fifth period. Both periods contained 28 days.

Note that unless otherwise indicated, all comparisons are to the fifth period ended May 21, 2006.

At the Publishing segment, revenues at the daily newspaper and the community newspapers and shoppers totaled $25.14 million, down 6.8% compared to $26.98 million. Advertising revenue was $18.11 million, down 9.6% compared to $20.03 million. Circulation revenue of $4.10 million was down 3.1% compared to $4.23 million. Other revenue of $2.93 million was up 7.7%.

At the daily newspaper, total advertising revenue was $13.15 million, down 8.5% compared to
$14.37 million. Specifically, retail advertising was down 3.0%, classified advertising revenue was
down 10.7%, national advertising revenue of $0.50 million decreased 22.7% and direct marketing revenue of $0.30 million was down 47.0%, reflecting a large department store’s consolidation of all of its mail programs. Within classified advertising, the help wanted and real estate verticals were down 14.6% and 19.9%, respectively, and the auto and other verticals increased 4.9% and 1.3%, respectively. Circulation revenue at the daily newspaper was $4.00 million, down 0.5% compared to $4.02 million. Other revenue at the daily newspaper of $0.89 million was up 30.1% compared to $0.69 million, reflecting the new USA Today commercial printing contract. Total interactive advertising revenue at the daily newspaper, which is reflected in the various revenue categories, increased 56.5% to $1.11 million compared to $0.71 million.

At the Company’s community newspapers and shoppers operations, total advertising revenue was $4.95 million, down 12.4% compared to $5.65 million. This largely reflects a mid-week shared mail product previously reported by the community newspapers and shoppers division and now reported under the daily newspaper following a business combination of the two operations’ shared mail product in Milwaukee. Specifically, retail advertising revenue was down 11.3%, classified advertising revenue decreased 19.5% and other advertising revenue of $0.06 million was up 31.1%.

Circulation revenue at the community newspapers and shoppers of $0.11 million decreased 50.2%, largely reflecting the change in the distribution model of the community newspapers in the Milwaukee area (from paid circulation to free delivery with the Thursday Milwaukee Journal 2 Sentinel). Other revenue at the community newspapers and shoppers of $2.04 million increased 0.2%. Period 5 2006 and Period 5 2007 results for the community newspapers and shoppers division include the Louisiana operations, whose pending sale was announced recently. For Journal Communications’ financial reporting purposes, the Louisiana operations will be reported as discontinued operations in the second quarter 2007 earnings press release.

At the Broadcasting segment, total revenue at the Company’s radio and television stations of $18.33 million decreased 3.2% compared to $18.92 million. At the radio group, revenue was $7.07 million, down 0.5% compared to $7.11 million. On a same-station basis (excluding revenue generated by KBBX-FM, which was sold in September 2006 and KOMJ-AM, which was sold earlier this year), radio revenue for the fifth period 2007 increased 1.7%. At the television group, revenue decreased 4.7% to $11.26 million compared to $11.82 million, primarily due to a decline in political and issue advertising revenue.

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