UPDATE 2-Journal Communications Q1 profit meets market view

martedì 22 aprile 2008 20:11
 

(Adds details, background, share movement)

April 22 (Reuters) - Journal Communications Inc JRN.N, publisher of the Milwaukee Journal Sentinel, posted first-quarter profit in line with market estimates, but forecast a fall in second-quarter publishing revenue as it sees a weak economy hurting advertising sales, sending its shares down sharply.

Newspaper publishers have been struggling with declining advertising sales as readers increasingly turn to the Internet for news, and the slowdown in the U.S. economy has made the advertising slump even more pronounced.

Journal, which also owns several radio and television stations, posted first-quarter net earnings of $6.7 million, or 11 cents a share.

Earnings from continuing operations stood at 10 cents per share, in line with analysts' expectations.

Revenue fell 6 percent to $134.3 million. Revenue from publishing, the company's biggest segment, fell about 9 percent to $60.7 million.

Analysts were looking for revenue of $136.9 million, according to Reuters Estimates.

The company's shares, which had touched a 52-week low of $5.70 earlier, were down more than 10 percent at $5.76 in afternoon trade. The stock was one of the top percentage losers on the New York Stock Exchange.

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