Tribune Publishing releases first earnings report covering Q2
Revenue and income fall as company deals with debt and rental expenses dumped on new publishing company by parent company
The recently spun out newspaper of The Tribune Company, now operating as Tribune Publishing Company, reported its Q2 earnings this morning. Only operating as a separate company since August 4, the new company got to open things up with a dismal earnings report.
The publisher of the Los Angeles Times and Chicago Tribune reported that revenue declined 3.8 percent to $429.9 million in Q2 of 2014 from $446.9 million a year ago. Net income also fell: down 30 percent, from $21.9 million to $15.2 million.
Income was reduced due to rental expenses the publishing division must now pay Tribune Media Company (the broadcast company created when newspapers were split off from broadcasting) and the corporate management fees imposed on the new company by its parent.
“The core business performed in-line with our expectations for the first half of 2014,” John Bode, Tribune Publishing CFO said. “Our 2014 third quarter results are projected to be positively impacted by our recently announced acquisitions in the Baltimore marketplace. Additionally, the recent announcement of the Cars.com modified affiliation agreement is expected to strengthen our future digital automotive classified product offering and represents an excellent outcome for stakeholders. We will continue to operate under the existing affiliate agreement with Classified Ventures until the sale of Cars.com closes.”
Tribune Publishing began trading publicly on the NYSE last week, opening above $25 a share, but is now trading at $20.36 in early trading this morning.