CHICAGO: Tribune Publishing Co. on Thursday reported a preliminary third-quarter loss that is expected to be revised to reflect a one-time legal charge, though revenue unexpectedly inched up as digital subscriptions grew.
The company said that on Wednesday, it received an unfavorable jury verdict in an employment litigation matter that will reduce third-quarter profit by an estimated 20 cents a share. The publisher said it would report finalized results on or before Nov. 11.
Like many of its peers, Tribune has been struggling as advertisers and readers shift from print to digital. Last summer, Tribune Media joined a host of other media companies when it shed its publishing business–which included newspapers such as the Los Angeles Times and the Chicago Tribune.
The spun-off Tribune Publishing has meanwhile added assets, in May announcing plans to acquire the San Diego Union-Tribune and a group of nine weeklies and digital properties in Southern California. Largely on account of those papers, Tribune in September warned that full-year results would be lower than previously anticipated.
In the latest quarter, advertising revenue slipped 0.5% while revenue from print and delivery declined revenue dropped 30%. But circulation revenue rose 11.6% from a year earlier, thanks to The San Diego Union-Tribune, and digital revenue rose 6.6% as digital subscribers increased 19% from a year earlier and 6% sequentially.
Overall, Tribune reported a preliminary loss of $3.4 million, or 13 cents a share, wider than its year-earlier loss of $200,000, or a penny a share. Excluding restructuring costs, among other items, Tribune earned 12 cents a share, down from 28 cents.
Revenue was $404.3 million, compared with $404.1 million in the year-ago quarter.
Analysts surveyed by Thomson Reuters projected 6 cents in per-share profit on $396.6 million in revenue, according to Thomson Reuters.
The company backed the guidance it issued in September, still calling for adjusted earnings before interest, taxes, depreciation and amortization of $145 million to $160 million and revenue of $1.645 billion to $1.675 billion.
