Tribune sees double

Tribune Co. closed out 2013, its first full year since emerging from bankruptcy, with a double-digit revenue decline during the fourth quarter.

The Chicago-based media company reported fourth quarter consolidated operating revenue of $773 million, down 11 percent from the previous year, according to financial results released Friday.

Revenue for the full year was $2.9 billion, a nearly 8 percent decline from 2012. The company cited lower advertising revenue and one less week in the fiscal year as contributing to the decline.

Tribune Co., which is planning to spin off its legacy newspapers, including the Chicago Tribune, saw broadcasting revenue decline more steeply that publishing for the quarter and the year.

'Broadcasting revenue trends during the first three quarters were disappointing,' Peter Liguori, president and CEO of Tribune Co., said in a statement. 'However, in the fourth quarter, non-political core advertising revenue stabilized year over year. Our root challenges are definable and addressable and we have taken action.'

Tribune Co. remained profitable in 2013, with cost-saving measures such as staff reductions helping to mitigate revenue declines. Operating profit was $349 million, down 12 percent.

For the year, Tribune Co. reported a net income of $241.6 million, or $2.42 per share.

Broadcasting revenue fell by more than 11 percent to about $1 billion in 2013. Advertising revenue was down 7 percent to $810 million, with lower baseball revenues at WGN-TV, a cyclical drop in political advertising and lower ratings at WGN America contributing to the decline.

Retransmission fees remained a bright spot for broadcasting, increasing 22 percent to $103 million, with higher rates for the company's TV stations offsetting lower carriage fees for WGN America.

The December 27 acquisition of Cincinnati-based Local TV for $2.73 billion added 19 television stations to Tribune Co.'s portfolio, but nothing to last year's bottom line. The financial statements include $4 million in revenue and $4 million in expense for the new stations.

Broadcasting operating profit was down 47 percent to $196 million for the year.

Tribune Co.'s publishing business fared relatively better last year, with operating revenues declining by 6 percent to about $1.89 billion. Advertising revenue fell by 9 percent, while circulation revenue increased by 1 percent, boosted by higher sales of digital subscriptions.

Publishing expenses decreased 14 percent, or $260 million, in 2013. Much of the savings came from continued reductions in staffing levels. Last year, the publishing division eliminated approximately 830 positions across its eight daily newspapers.

Last year, publishing operating profit was $234 million, up from $89 million in 2012.

'In the Publishing business, our operational actions have stabilized profitability and we are confident that we are building a solid foundation for this business's future,' Liguori said.

Tribune Publishing is set to spin off as a publicly-traded company by mid-year, and received a 'favorable private letter ruling' from the Internal Revenue Service on March 7, according to the financial statements, a prerequisite for the tax-free distribution.

Cash distributions from equity investments, which stay with Tribune Co. and include CareerBuilder, Classified Ventures and TV Food Network, totaled $208 million in 2013, down about 10 percent.

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