Journal Communications 2Q profit falls 36 percent

Profit dropped to $9 million, or 16 cents per share, for the three months ended June 29 from 14.2 million, or 21 cents per share, in the same quarter last year. The 2007 result includes a $1.4 million gain from discontinued operations of certain clusters of its community newspapers and shoppers division.

Revenue fell 5 percent to $140.1 million, from $147.5 million last year.

Analysts surveyed by Thomson Financial forecast, on average, earnings of 15 cents per share on sales of $138.6 million.

Television revenue grew in markets including Palm Springs, Omaha, Boise and Lansing and radio revenue grew in Omaha, but larger growth markets continued to experience subdued advertiser spending, said Steven J. Smith, chairman and chief executive officer.

Publishing revenue remained soft, though hyper-local community newspapers surrounding Milwaukee grew in the quarter. Online advertising revenue continued to increase at both the publishing and broadcast sites. Total online revenue was up 15.9 percent to about $4.7 million.

Broadcasting revenue fell 4.6 percent to $53.5 million while publishing revenue dropped 8.5 percent to $61.8 million, in the period.

The company has cut broadcast staff 6 percent this year and plans to reduce its work force by an additional 10 percent.

Journal Communications expects television revenues to improve slightly in the second half of the year from Olympics and political advertising.

However, it still expects publishing revenue will be down compared with the prior-year period, reflecting continued challenges in classified advertising, partially offset by continued growth in commercial printing and interactive advertising revenue at the daily newspaper. Radio revenue is expected to be slightly down compared with last year.