Media companies down over slumping advertising revenues

By David Hatfield
Inside Tucson Business
Published on Saturday, May 17, 2008

What’s got you down, bunky? You say you’re in media? Advertising sales, huh? I get it.

It seems just about any media person I’ve talked with in the past few weeks is down in the dumps. And in every case it’s the same thing: lousy advertising sales.

Last week, there was some concrete evidence of just how bad things are this year when three of the six public companies that own media outlets in Tucson reported their earnings - at least that’s what they’re supposed to be - for the three months ended March 31.


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Revenue was down 8.4 percent at Gannett, publisher of the Tucson Citizen, Phoenix Arizona Republic, USA Today and 82 other daily newspapers and 23 TV stations, including KPNX, the NBC station in Phoenix. CEO Craig Dubow told analysts on a conference call the weakness was especially acute at Gannett’s 11 newspapers in Arizona, California, Florida and Nevada, where real estate markets have suffered the most in the nation.

Revenue was down 6.2 percent at Journal Communications, owner of ABC affiliate KGUN 9, Mix-FM KMXZ 94.9-FM, Mega Oldies KGMG 106.3-FM/104.9-FM, The Truth KQTH 104.1-FM and ESPN The Fan KFFN 1490-AM. Journal is also in the process of acquiring CW station KWBA 58/cable 8.

Revenue was down 5.7 percent at Lee Enterprises, publisher of the Arizona Daily Star.

Mind you these are year-to-year comparisons. Chances are more than one these companies built this year’s annual budget predicated on revenue increases, not decreases.

We’ve yet to hear from three other public companies with Tucson outlets. Belo Corp., which owns Fox affiliate KMSB 11 and KTTU 18, is due to report this week. Citadel Broadcasting, which owns five radio stations, will report earnings in April. Same with Clear Channel, which owns seven radio stations, the outdoor billboard company and is in the midst of a messy private buyout battle.

The signs aren’t good for those working in news media these days. These companies will still look to make money.

Gannett still posted a profit of $191.8 million, from $1.68 billion in revenue, but the profit was down 9 percent.

Journal Communications also still posted a profit of $6.3 million, from $134.3 million in revenue, but the profit was down 23.7 percent compared to a year ago.

Lee Enterprises actually reported a loss of $4.45 million but that had to do with an accounting procedure to mark down the value of an ownership partnership at the St. Louis Post-Dispatch by $79.2 million. Had that not happened, Lee would have made a profit of $3.6 million. But Lee warned it will file another goodwill value markdown for its St. Louis operation amounting to somewhere between $500 million and $700 million, once the accountants figure out exactly how much it will be. A year ago, Lee reported a profit of $11.9 million.

Names in news

From the weather department at KGUN 9, meteorologist Brian Basham is now part of the "Good Morning Tucson" and the 11 a.m. newscasts. He comes from El Paso, where he had been since 2005. It’s a reunion, of sorts, with Basham and news anchor, Ian Reitz. Both worked at KTSM, the NBC station in El Paso, before coming here, though they generally worked different newscasts there.... Out at KGUN is Len Johnson. It’s a personnel matter so, as per usual, KGUN management isn’t talking. But the departure April 18 was sudden and the competition in the market is taking note of the fact that KGUN is emphasizing Basham is a meteorolgist and Johnson wasn’t.

Another weather item: KGUN’s chief meteorologist, Erin Christiansen, has earned the American Meteorological Society’s Certified Broadcast Meteorologist designation. Even though it’s a relatively new program started in 2005, as an upgrade to the society’s former "Seal of Approval," it’s not quite accurate to say Christiansen is the first in Tucson to earn the title, unless you also add the words "this year." KOLD 13’s Aaron Pickering, who mainly does the weekend newscasts, has had the designation since last year, the station says.

Contact David Hatfield at dhatfield@azbiz.com or (520) 295-4237. Inside Tucson Media appears weekly.

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Comments

Joyce wrote on Jun 25, 2008 9:31 AM:

" We just arrived home from a 3 month vacation and was so surprised to see a new weather caster. I found on your website that Len Johnson was fired and we are so saddened by that. We looked forward every morning to seeing Len. God's blessings on him and his wife. "

HILLARY MARTINEZ wrote on May 9, 2008 5:11 PM:

" Yes, I heard that too from an employee of the Star, The spanish version of the newspaper, La estrela, isn't making any profit and besides they have a huge overhead and a lousy sales team...bummer...opening a spanish newspaper, bad business decision in bad business times... "

RONALDO CLAMSTER wrote on May 3, 2008 9:30 AM:

" You forgot to mention that a huge tucson local weekly newspaper "la voz" from gannet shut down 2 months ago!

And we've heard news that "LA estrella" of Tucson is going the same way along with TV y MAS..this is what other media executives say in the streets... "

Mike wrote on Apr 27, 2008 6:31 PM:

"
Comments about Len and KGUN at http://insidetucsontv.com/2008/04/19/len-johnson-out-at-kgun.aspx?results=1#SurveyResultsChart

"

Mike wrote on Apr 26, 2008 11:51 PM:

" (Len Johnson) That explains why KGUN never fixed his intro: "...weather, with...with Len Johnson." "

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