DALLAS — Belo, parent of the Providence Journal, saw its income drop sharply for the first quarter of 2001.
The media company, which operates in broadcasting, publishing, cable and interactive media, posted a profit of $623,000 — or 1 cent per share — compared to $15.39 million, or 13 cents per share, a year ago. Total revenues fell 9 percent, to $331.5 million, from $364.5 million a year ago.
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Factors contributing to the drop in income include a soft advertising environment, investment in its Interactive division and higher newsprint costs. In a statement accompanying its financial results, Belo chairman Robert W. Decherd said the company intended to maintain “very tight cost controls in the second quarter.” He added that the company is “aggressively addressing employment costs,” through attrition, holding vacancies and hiring freezes except for a “limited number of critical positions.”
Belo has reduced its capital budget for the full year 2001. It does not expect to meet analysts’ expectations that it earn 22 cents per share in the second quarter, Decherd said.
Shares of Belo were down 40 cents today, at $16.60 in early morning trading. Over the past year, shares have sold as low as $15.20 and as high as $20.
