ProJo parent New Media narrows first quarter loss

PROVIDENCE – Providence Journal owner New Media Investment Group Inc. narrowed its first quarter loss to $6.1 million, or 14 cents per diluted share, a 9.3 percent improvement over first quarter 2014’s loss.

Revenue for the company was $250.6 million, an increase of 76 percent compared with the prior year period, according to its earnings report released Thursday.

“New Media’s strong first quarter results position the company for another solid year,” New Media President and CEO Michael E. Reed said in a statement. “Despite the severe winter weather that negatively impacted our publications in the Northeast, we closed the first quarter with total revenues of $250.6 million.”

He said growth is being driven by investments the company is making in its digital and print initiatives. He noted that the company also closed its two largest acquisitions to date in the first quarter – Halifax Media and Stephens Media, for $280 million and $102.5 million, respectively.

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The Journal was purchased for $46 million in early September.

“Both companies’ publications are well-established, leading providers of local news in the communities they serve, and present a tremendous opportunity for New Media to expand its digital businesses, as well as realize future synergies. As our operations team continues to integrate the new acquisitions, our separate sourcing team continues to work to identify quality, local media assets that fit our financial and operational criteria,” Reed said.
Circulation, New Media’s largest individual revenue category at 32 percent of total revenues, increased seven-tenths of a percentage point on a same-store basis.

In addition, New Media announced a cash dividend of 33 cents per share.

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