Newspaper companies used to be able to count on their internet units as a bright spot. Not anymore. AH Belo (NYSE: AHC) (NYSE: BLC), the newspaper half of the old Belo Corp., saw its online revenues drop for the second consecutive quarter, as internet ad dollars fell 19 percent to $11.4 million in Q3. Online’s share of AH Belo, publisher of the Dallas Morning-News and two other papers, is now 7.4 percent of the publisher’s total revenues.
Overall, AH Belo posted $153.8 million in revenues — a 15 percent decline — and a net loss of $17.3 million ($0.84 per share) in Q3. The loss was attributed to $11.1 million in expenses related to staff buyouts. Ad revenue, including print and online, was down 22 percent, mostly due to classifieds, a sore spot at most newspapers these days. Circulation revenue, which has been in decline across most newspapers recently, actually grew in Q3, as AH Belo said it was up 12 percent.