The company says the drop is due to the “continued deterioration of advertising expenditures” and leads to a TV station operating loss of $51.9 million.
Journal Communications Inc. today announced that for the fourth quarter of 2008, revenue from its television stations decreased 5.5% to $33.4 million compared to $35.3 million.
Television political and issue advertising revenue was $6.1 million compared to $400,000.
Operating loss from television stations of $51.9 million included a $56.9 million pre-tax non-cash impairment charge for all television broadcast licenses. Excluding the non-cash impairment charge, operating earnings were essentially flat at $5 million, Journal said.
Television operating expenses (excluding the non-cash impairment charge but including KPSE-LP that was acquired in January 2008 and KWBA-TV that was acquired in July 2008) are down 6.5% compared to last year.
For the company as a whole, fourth quarter revenue was $134.3 million, a decrease of 9% compared to $147.6 million. The operating loss was $324.9 million compared to operating earnings of $18.0 million.
“The overall economic environment and continued deterioration of advertising expenditures in Journal markets impacted our business in the fourth quarter causing lower revenue across all segments,” said Steven J. Smith, chairman and chief executive officer of Journal Communications.