Earnings: Sun-Times Operating Loss Expands Significantly; Online Ad Revs Up 58 Percent

The Sun-Times Media Group (NYSE: SVN) reported a widening operating loss of $80.6 million in Q2 versus last year’s loss of $13.7 million. However, the newspaper publisher did have some good news, as the reversal of tax liabilities pushed Q2 net income up significantly to $528 million, or $6.57 per basic share, from net income of $20.6 million, or $0.24 per basic share in the same period in 2006. But for the most part, the company was impacted by the usual newspaper industry travails, as ad revenue declined 12 percent to $73.2 million from $83.6 million and circulation was down 8 percent.

— Total operating revenues in the second quarter of 2007 were $94.3 million, versus $107.4 million in the year-ago period. Classified advertising fell 18 percent, while retail and national advertising were lower by 9 percent and 19 percent, respectively. These declines were partially offset by a 58 percent increase in online ad revenue. Earnings release | Webcast (4:30 p.m. EDT)

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