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Media General Profit Drops 70%

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The Associated Press

Published: February 1, 2008

RICHMOND, Va. - Media General, the parent company of The Tampa Tribune, TBO .com and WFLA, Channel 8, said Thursday that 2007 fourth-quarter profit dropped 70 percent, hurt by write-downs, one less week in the quarter and less political revenue.

The media company reported it booked net income of $9.6 million, or 43 cents a share, for the period that ended Dec. 30. By comparison, it booked $31.6 million, or $1.33 a share, in the same quarter the year before.

Shares in the company closed Thursday at $19.70, down 50 cents.

The Richmond-based company said a gain of $17.6 million from an insurance settlement was offset by a $15 million write-down of its sale of SP Newsprint Co., a $2 million loss related to plans to sell three TV stations, and a $1.4 million write-down related to an investment in a company that creates interactive entertainment.

Media General's 2007 fourth quarter had 13 weeks, compared with 14 weeks the prior year. The company estimated that the extra week added $18.5 million in revenue and $2.5 million in earnings in 2006.
Quarterly revenue in 2007 dipped to $243.8 million, down from $289.4 million in 2006.

For the year, the company reported a profit of $10.7 million, or 47 cents a share, compared with $79 million, or $3.35 a share, in 2006.

In other news, Media General's board declared a quarterly dividend of 23 cents per common share. The dividend is payable March 15 to Class A and Class B shareholders of record on Feb. 29.

Along with the Tribune, the company owns the Richmond Times-Dispatch, the Winston-Salem Journal in North Carolina, and 22 other daily newspapers in Virginia, North Carolina, Florida, Alabama and South Carolina. It also owns 150 weekly newspapers and 23 network-affiliated television stations.

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