for belo bashers

Belo expects flat revenues from TV in '07; newspapers seen lower

12/05/2006

Associated Press

Belo Corp. said Tuesday that revenue from its television stations would likely be flat next year while revenues at its newspapers, including The Dallas Morning News, could decline slightly.

Belo said TV political advertising, which brought in $46 million this year, will probably fall to $7 million to $10 million next year, and some one-time gains of 8.5 cents per share won't be repeated. Stock-based compensation and bonus costs will rise by about $8.1 million or 5 cents per share, the company said.

But the company will also see more cost savings from staff cuts at the Dallas paper and The Press-Enterprise in Riverside, Calif., officials said.

Belo also said it would take a fourth-quarter charge of about $4 million to cover additional cash contributions to employees whose pension plan is being frozen.

Dallas-based Belo announced last month it would freeze a pension plan covering nearly one-third of its workers effective next March 31 and shift them to a 401(k) retirement plan. But it pledged to make additional contributions to give employees the same benefits they would have received if the pension plan had survived 10 more years.

The additional cash contributions will be $60 million from 2007 through 2010 but will be offset by savings in later years, executives said.

Executives made the comments at a Credit Suisse investor conference in New York.

For 2006, Belo projected that 12 of its 20 television stations would report record spot revenue before political advertising, while newspaper revenue fell 5.4 percent in October and was down 0.2 percent for the year through November.

Belo shares rose 19 cents, to $18.63 on the New York Stock Exchange.

 

Let's see -- Belo announces its TV revenues will be flat, and newspaper revenue will be down despite all the staff cuts they made ... but they INCREASE the bonuses they gave their executives?

TO BELO'S BOARD OF DIRECTORS: Uh, I don't have a masters in business, but wouldn't it make sense that if you want to save the company money, that you DON'T GIVE OUT BONUSES until the company's revenue INCREASES?

 

See! Thinking like yours explains why they are in an ivory tower and you are looking for stringin work....

 

Conversation at the Belo board meeting goes something like this:

The Boss: "Hey, great job on revenues! We could have lost a whole lot more than we did."

A$$ki$$er: "You're absolutely right, Boss. Let's give ourselves a big bonus for cutting our losses!"

 

The Boss: "Great idea! Let's lay off a few more reporters while we're at it ... but only the people who have been there a long time. We can always fill their positions with college grads who don't know any better!"

 

I feel better now about my decision not to purchase "CowboysPlus.com" online coverage. Blow me, Belo. Star-Telegram will do well enough for me.

 

More grist for the Belo mill: The DMN will cut its circulation area even more.

http://www.dallasnews.com/sharedcontent/dws/bus/stories/DN-belo_06bus.ART.State.Edition1.316a819.html