PROVIDENCE – New Media Investment Group Inc., the parent company of the Providence Journal, reported a $2 million loss for the 2017 third quarter, a reversal of its $2.8 million profit a year earlier. Losses per diluted share were 4 cents for the quarter, in contrast to earnings per diluted share of 6 cents in the 2016 third quarter.
Revenue for the news organization with print and online operations in 540 markets increased 3.4 percent year over year to $317.2 million. Organic same-store sales fell 6.4 percent to $284.5 million. Advertising revenue fell 3.2 percent to $159.5 million. But circulation, and commercial printing and other revenue both increased, 7.7 percent to $112.8 million and 19.9 percent to $44.9 million, respectively. Print advertising revenue declined 14 percent on an organic same-store basis even as digital revenue increased 11.1 percent year over year to $35.6 million.
“We are not satisfied with our third-quarter financial results, despite some great accomplishments in the quarter that continue to better position the company for long-term success,” said Michael E. Reed, New Media president and CEO. “The tragic events resulting from the hurricanes in Florida and Texas did negatively impact our third-quarter results. However, this is short term, and we do not expect any lingering impact in the fourth quarter.”
Results for New Media were negatively impacted by $6.2 million of expenses that included a $4.8 million extraordinary charge for the early extinguishment of debt. The company spent $2.2 million on integration and reorganization costs for the quarter, a decline of 57.5 percent year over year. The company also reported that it spent $927 million on pension payments in the quarter, an increase of $102 million year over year.
The company completed two acquisitions recently, purchasing Calkins Media for $17.5 million in late June and Morris Publishing Group for $120 million in October.
According to its website, New Media owns 125 daily newspapers and 314 weekly newspapers.
Chris Bergenheim is the PBN web editor.
