News, Scripps see downturn in 2nd quarter
By David Milstead, Rocky Mountain News (Contact)
Friday, July 25, 2008
The Rocky Mountain News posted a $3.9 million loss in the second quarter, compared with a $2.2 million loss in the second quarter of 2007.
Cincinnati-based E.W. Scripps, parent of the Rocky, said its share of earnings from the Denver Newspaper Agency was $1.3 million for the quarter, down 78 percent from $6 million in the second quarter of 2007.
While Scripps no longer explicitly identifies newsroom expenses for Denver, they can be figured from the way the company reports profits in its newspaper division. Based on the data, the Rocky had $5.2 million of newsroom expenses in the quarter, producing the $3.9 million loss.
The agency, a 50-50 partnership between Scripps and MediaNews Group, owner of The Denver Post, manages the business operations of the two newspapers. The agency's earnings reflect revenue to Scripps and Media News before newsroom expenses for the two papers are deducted.
MediaNews does not release financial information. If the Post's newsroom expenses are as large or larger than the Rocky's, its losses were as large or larger in the second quarter.
Total revenue at Scripps newspapers in the second quarter was down 13 percent, year over year, to $144 million. Newspaper segment profit for the period was $16.3 million, vs. $30.1 million last year.
Two other newspaper companies — McClatchy and Lee Enterprises — also said profits fell by nearly half in the second quarter. The three, plus The New York Times Co. and Gannett, all described double-digit revenue declines.
Scripps spun off its cable channels and Web sites into a new company, Scripps Networks Interactive, on July 1.
The Associated Press contributed to this article
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July 25, 2008
9:22 p.m.
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LOUIE writes:
Seems destine to fail in order to maintain the JOA criteria that allowed both papers to merge under the Joint Operating Agreement. Preservation, what a joke. I guess it was better than the Rocky's demise, how sad to always be the loser hanging on to the other paper financial success. Even the post is losing paid subscriptions. Print news needs to reinvent itself in a highly competitive world. How? Wish I was schooled better, this paper is worth saving.