Scripps up sharply on Wall St on surprise profit

Aug 10, 2009
Pressmen check the final editions of the Rocky Mountain News starting to roll off the presses at the EW Estlow printing facility February 2009 in Denver, Colorado. US media company EW Scripps Co. reported a surprise quarterly net profit on Monday, despite a 29 percent decline in advertising revenue, sending its shares sharply higher on Wall Street.

US media company EW Scripps Co. reported a surprise quarterly net profit on Monday, despite a 29 percent decline in advertising revenue, sending its shares sharply higher on Wall Street.

Scripps posted a net profit of 2.3 million dollars in the compared with a net loss of 531.2 million dollars a year ago on write-downs in the value of its newspaper operations and other businesses.

Scripps, which owns 10 television stations and newspapers in 14 US markets, said revenue declined by 23 percent to 194 million dollars in the quarter which ended on June 30.

The surprise at the Cincinnati, Ohio-based media company sent its share price soaring. Scripps shares were trading at 7.15 dollars at mid-day in New York, up 30.95 percent from the opening bell.

"Scripps has been able to protect its financial health and look ahead with optimism despite an that has throttled the flow of marketing dollars across this country," president and chief executive Rich Boehne said.

"In the near term, we are seeing some slight improvement in the flow of advertising in our markets, particularly at the television stations," he said in a statement.

Boehne added that the company would be shifting resources "to those areas that have the best long-term return -- news and information content and the development of new revenue streams."

Scripps said revenue from its television stations fell 24 percent to 61.1 million dollars in the quarter.

Newspaper revenue fell 22 percent to 113 million dollars while advertising revenue declined 29 percent to 79.4 million dollars. Online advertising revenue dropped by 25 percent to 7.3 million dollars.

Scripps said its second quarter results included 900,000 dollars in final costs related to the closure of the Rocky Mountain News, the Denver, Colorado, newspaper shuttered in February.

Like other US newspapers, the Scripps chain has been grappling with falling print , declining circulation and free news online.

Among the newspapers owned by Scripps are The Commercial Appeal and Knoxville News Sentinel of Tennessee and the Naples Daily of Florida.

(c) 2009 AFP

Explore further: Out-of-patience investors sell off Amazon

add to favorites email to friend print save as pdf

Related Stories

Washington Post stems tide of red ink

Jul 31, 2009

The Washington Post Co. reversed its slide and posted a quarterly profit on Friday despite a steep decline in advertising revenue at its flagship newspaper.

US newspaper ad revenue slide continues

Jun 01, 2009

US newspaper advertising revenue fell more than 28 percent in the first quarter of the year with both print and online posting declines, according to the Newspaper Association of America.

News Corp. posts flat third quarter

May 07, 2009

Media giant News Corp. reported a flat quarterly net profit of 2.7 billion dollars on Wednesday as one-time items helped compensate for a slide in advertising revenue.

Taiwan's HTC says profit down 30 percent

Apr 06, 2009

Taiwan's smartphone maker HTC Corp posted a year-on-year 30 percent fall in first quarter net profit as the global economic meltdown hit sales, the company said Monday.

HP profits lower, to cut nearly 6,400 workers

May 19, 2009

US computer giant Hewlett-Packard reported a 17-percent fall in quarterly net profit on Tuesday and said it plans to cut two percent of its workforce, or nearly 6,400 workers, over the next year.

Grim US newspaper ad revenue figures released

Mar 27, 2009

Last year was the worst ever for the US newspaper industry with both print and online advertising revenue posting declines, according to Newspaper Association of America (NAA) figures.

Recommended for you

Out-of-patience investors sell off Amazon

Oct 24, 2014

Amazon has long acted like an ideal customer on its own website: a freewheeling big spender with no worries about balancing a checkbook. Investors confident in founder and CEO Jeff Bezos' invest-and-expand ...

States ascend into the cloud

Oct 24, 2014

Seven years ago, the state of Delaware started moving computer servers out of closets and from under workers' desks to create a consolidated data center and a virtual computing climate.

Microsoft drops Nokia name from smartphones

Oct 24, 2014

Microsoft said Friday it was dropping the Nokia name from its Lumia smartphones, rebranding following the acquisition earlier this year of the Finnish group's handset division.

Amazon's loss makes holidays a question mark

Oct 24, 2014

Amazon's trademark smile icon is becoming more of a grimace. The world's largest online retailer reported a wider third-quarter loss than analysts expected and gave a disappointing holiday forecast.

User comments : 0