First released earnings report for Journal Media Group shows publisher in the black
Advertising and marketing revenue declined 11 percent, while subscription revenue fell 6 percent, despite price hikes
The first earnings report for the newly formed Journal Media Group was released this morning. The report shows the company with net income of $3.3 million on revenue of $115.8 million.
The company was formed from Journal Communications, publisher of the Milwaukee Journal-Sentinel, and the newspapers obtained from Scripps. For its part, Scripps picked up the broadcast properties from Journal Communications. That sounds like the world’s worst media deal until you understand that Scripps also picked up pension obligations.
“As we completed our first full quarter of operations under the Journal Media Group umbrella, we are committed to enhancing shareholder value” said Tim Stautberg, president and CEO of Journal Media Group.
“While the revenue picture has been challenging throughout the newspaper industry, our team has been focused on completing the remaining integration tasks and driving the value of our local brands and the unique connection that we have with readers and advertisers in the communities we serve.”
Because this is the first report from the new company, with more newspaper properties to report, there is not much to compare performance to. But the company said that advertising and marketing revenue was down 11 percent in the quarter, while “subscription revenue of $39.3 million declined 6 percent, as volume declines more than offset price increases.”
What drove income, then, was cost reductions tied to the merging of newspaper properties.
Those properties added to the new company include The Commercial Appeal, the Knoxville News Sentinel, the Ventura County Star among others.