MILWAUKEE–(BUSINESS WIRE)–Journal Communications, Inc. (NYSE:JRN) announced today that for the fourth period ended April 29, 2007, total revenues for its Publishing and Broadcast groups of $41.26 million decreased 3.1% compared to $42.57 million reported for the fourth period ended April 23, 2006. For the fourth period 2007, advertising revenues of $34.48 million decreased 3.6% compared to $35.76 million for the 2006 fourth period. Both periods contained 28 days.
Note that unless otherwise indicated, all comparisons are to the fourth period ended April 23, 2006.
At the Publishing segment, revenues at the daily newspaper and the community newspapers and shoppers totaled $23.84 million, down 6.8% compared to $25.57 million. Advertising revenue was $17.06 million, down 9.1% compared to $18.76 million. Circulation revenue of $4.04 million was up 0.3% compared to $4.03 million. Other revenue of $2.74 million was down 1.4%.
At the daily newspaper, total advertising revenue was $12.54 million, down 6.1% compared to $13.35 million. Specifically, retail advertising was down 3.0%, classified advertising revenue was down 4.8%, national advertising revenue of $0.63 million decreased 18.7% and direct marketing revenue of $0.25 million was down 46.4%, reflecting a large department store’s consolidation of all of its mail programs and a decrease in postage revenue billed to solo mail customers. Within classified advertising, the help wanted, real estate and auto verticals were down 7.1%, 9.2% and 5.0%, respectively, and the other vertical increased 13.8%. Circulation revenue at the daily newspaper was $3.92 million, up 3.2% compared to $3.79 million. Other revenue at the daily newspaper of $0.79 million was up 18.6% compared to $0.67 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 38.2% to $0.99 million compared to $0.71 million.
At the Company’s community newspapers and shoppers operations, total advertising revenue was $4.52 million, down 16.5% compared to $5.41 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. Specifically, retail advertising revenue was down 13.0%, classified advertising revenue decreased 22.0% and other advertising revenue of $0.02 million was down 88.2%. Circulation revenue at the community newspapers and shoppers of $0.12 million decreased 47.7%, 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 Sentinel). Other revenue at the community newspapers and shoppers of $1.96 million decreased 7.7%.
At the Broadcasting segment, total revenue at the Company’s radio and television stations of $17.42 million increased 2.5% compared to $16.99 million. At the radio group, revenue was $6.57 million, up 4.3% compared to $6.29 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 fourth period 2007 increased 6.5%. At the television group, revenue increased 1.5% to $10.86 million compared to $10.70 million.
Forward-looking Statements
This press release contains certain forward-looking statements related to our businesses that are based on our current expectations. Forward-looking statements are subject to certain risks, trends and uncertainties, including changes in advertising demand and other economic conditions that could cause actual results to differ materially from the expectations expressed in forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. Our written policy on forward-looking statements can be found on page 1 of our most recent Annual Report on Form 10-K as filed with the Securities and Exchange Commission.
About Journal Communications
Journal Communications, Inc., headquartered in Milwaukee, Wisconsin, was founded in 1882. We are a diversified media company with operations in publishing, radio and television broadcasting, interactive media and printing services. We publish the Milwaukee Journal Sentinel, which serves as the only major daily newspaper for the Milwaukee metropolitan area, and 75 community newspapers and shoppers in eight states. We own and operate 35 radio stations and ten television stations in 12 states and operate one television station under a local marketing agreement. Our interactive media assets include more than 75 online enterprises that are associated with our daily and community newspapers, television and radio stations. We also provide a wide range of commercial printing services – including printing of publications, professional journals and documentation material – and operate a direct marketing services business.
