Earnings: Journal Communications Q3 Revs Drop 5.6 Percent; Profits Up 2.9 Percent

A soft advertising environment pushed Q3 revenues at Journal Communications down 5.6 percent to $144 million from $153 million. The company specifically cited weak real estate and employment advertising for the decline. Net income actually rose 2.9 percent, to $13.9 million, from $13.5 million, but the company received one-time tax and insurance gains in the quarter worth $1.25 million. Without this, net income would have declined 6 percent to $12.7 million. Income also benefited from $2 million less in interest payments, the result of an asset sale and subsequent debt reduction.

— Interactive revenue at the Milwaukee Journal Sentinel rose 33 percent to $3.4 million, while interactive revenue on the broadcast side hit $800,000.

— Launched Jobnoggin.com in September, employment site co-branded with Monster.com.

— Total broadcast revenue fell 7.9 percent to $53.7 million.

Release | Webcast

Conference Call: Unlike Belo (NYSE: BLC) and Scripps, Journal Communications (NYSE: JRN) has no intention of splitting up its print and broadcast business. As CEO Steve Smith pointed out, the company has only one daily newspaper, and it enjoys exemption from media cross-ownership limitations. COO Betsey Brenner fielded a question about the Monster partnership, stating that the company’s initial goal was to realize $100k in revenue per month from Jobnoggin and that after 18 days of sales, they’re 75 percent there. Other than that, however, it’s too early to say anything substantive about it.

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