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Journal Communications Reports December Revenue for Its Publishing and Broadcast Groups

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MILWAUKEE--(BUSINESS WIRE)--Feb. 12, 2009-- Journal Communications, Inc. (NYSE:JRN) announced today that for the twelfth period ended December 28, 2008, total revenues for its Publishing and Broadcast groups of $39.08 million decreased 12.4% compared to $44.58 million reported for the twelfth period ended December 30, 2007. For the twelfth period 2008, advertising revenues of $32.41 million decreased 14.9% compared to $38.09 million for the 2007 twelfth period. Both periods contained 35 days.

Note that unless otherwise indicated, all comparisons are to the twelfth period ended December 30, 2007.

At the Publishing segment, revenues at the daily newspaper and the community newspapers and shoppers totaled $22.12 million, down 9.1% compared to $24.33 million. Advertising revenue was $15.45 million, down 13.4% compared to $17.84 million. Circulation revenue of $5.08 million was up 2.5% compared to $4.96 million. Other revenue of $1.59 million was up 3.9%.

At the daily newspaper, total advertising revenue was $12.54 million, down 16.2% compared to $14.97 million. Specifically, retail advertising revenue was down 5.2% and classified advertising revenue was down 34.5%. National advertising revenue of $0.76 million decreased 20.9% and direct marketing revenue of $53,000 was down 89.7%. Within classified advertising, the help wanted, real estate/rentals, auto verticals and the other classified verticals were down 60.3%, 23.5%, 24.6% and 2.5%, respectively. Circulation revenue at the daily newspaper was $4.90 million. Other revenue at the daily newspaper of $1.24 million was up 1.5% compared to $1.22 million primarily due to new commercial printing customers in 2008. Total interactive advertising revenue at the daily newspaper, which is reflected in the various revenue categories, decreased 7.4% to $1.15 million compared to $1.24 million.

At the Company’s community newspapers and shoppers operations, total advertising revenue was $2.92 million, up 1.5% compared to $2.88 million. Retail advertising revenue was essentially flat. Classified revenue was up 8.9% due to revenue from the acquisitions in 2008. Other advertising revenue was $21,000. Circulation revenue at the community newspapers and shoppers of $0.19 increased 86.9%. Retail and classified advertising and circulation revenue were favorably impacted by acquisitions in 2008. Other revenue at the community newspapers and shoppers of $0.35 million increased 13.3% due to an increase in commercial printing.

At the Broadcasting segment, total revenue at the Company’s radio and television stations of $16.95 million decreased 16.3% compared to $20.25 million. At the television group, revenue decreased 21.0% to $9.73 million compared to $12.32 million, primarily due to softness in all television markets except Milwaukee. At the radio group, revenue of $7.22 million was down 8.9% compared to $7.93 million, reflecting declines in all of our radio markets.

Like a number of media companies, Journal Communications has determined that starting in 2009 the Company will no longer publish monthly revenue results. The Company does not believe releasing this information on a monthly basis is more helpful than providing it on a quarterly basis and the monthly releases are not representative of the Company’s longer-term focus.

Forward-looking Statements

This press release contains certain forward-looking statements related to our businesses that are based on our current expectations. Forward-looking statements are subject to certain risks, trends and uncertainties, including changes in advertising demand and other economic conditions that could cause actual results to differ materially from the expectations expressed in forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. Our written policy on forward-looking statements can be found on page 1 of our most recent Annual Report on Form 10-K and on page 23 of our most recent Quarterly Report on Form 10-Q, each as filed with the Securities and Exchange Commission.

About Journal Communications

Journal Communications, Inc., headquartered in Milwaukee, Wisconsin, was founded in 1882. We are a diversified media company with operations in publishing, radio and television broadcasting, interactive media and printing services. We publish the Milwaukee Journal Sentinel, which serves as the only major daily newspaper for the Milwaukee metropolitan area, and more than 50 community newspapers and shoppers in Wisconsin and Florida. We own and operate 35 radio stations and 12 television stations in 12 states and operate an additional television station under a local marketing agreement. Our interactive media assets include about 120 online enterprises that are associated with our daily and community newspapers and television and radio stations. We also provide a wide range of commercial printing services – including printing of publications, professional journals and documentation material – and operate a direct marketing services business.

Tables Follow

Journal Communications, Inc.
Publishing Segment Information (unaudited)
(dollars in thousands)
                 

Publishing revenue by category:

 
Twelfth period of 2008 (A) Twelfth period of 2007 (A)
 
Community Community
Daily Newspapers Daily Newspapers % Change % Change % Change
Newspaper & Shoppers Total Newspaper & Shoppers Total Daily CN&S Total
 
Advertising revenue:
Retail $ 9,336 $ 2,496 $ 11,832 $ 9,851 $ 2,483 $ 12,334 (5.2 ) 0.5 (4.1 )
Classified 2,385 402 2,787 3,640 369 4,009 (34.5 ) 8.9 (30.5 )
National 761 -- 761 962 -- 962 (20.9 ) N/A (20.9 )
Direct Marketing 53 -- 53 514 -- 514 (89.7 ) N/A (89.7 )
Other -- 21 21 -- 24 24 N/A (12.5 ) (12.5 )
Total advertising revenue 12,535 2,919 15,454 14,967 2,876 17,843 (16.2 ) 1.5 (13.4 )
Circulation revenue 4,898 185 5,083 4,859 99 4,958 0.8 86.9 2.5
Other revenue 1,237 350 1,587 1,219 309 1,528 1.5 13.3 3.9
Total revenue $ 18,670 $ 3,454 $ 22,124 $ 21,045 $ 3,284 $ 24,329 (11.3 ) 5.2 (9.1 )
 
 
 
Twelve periods of 2008 (B) Twelve periods of 2007 (B)
 
Community Community
Daily Newspapers Daily Newspapers % Change % Change % Change
Newspaper & Shoppers Total Newspaper & Shoppers Total Daily CN&S Total
 
Advertising revenue:
Retail $ 83,632 $ 27,741 $ 111,373 $ 90,235 $ 29,318 $ 119,553 (7.3 ) (5.4 ) (6.8 )
Classified 43,438 5,664 49,102 58,152 5,994 64,146 (25.3 ) (5.5 ) (23.5 )
National 7,559 -- 7,559 9,227 -- 9,227 (18.1 ) N/A (18.1 )
Direct Marketing 3,365 -- 3,365 4,477 -- 4,477 (24.8 ) N/A (24.8 )
Other -- 384 384 -- 386 386 N/A (0.5 ) (0.5 )
Total advertising revenue 137,994 33,789 171,783 162,091 35,698 197,789 (14.9 ) (5.3 ) (13.1 )
Circulation revenue 50,514 1,266 51,780 51,174 1,082 52,256 (1.3 ) 17.0 (0.9 )
Other revenue 14,878 3,531 18,409 12,234 3,863 16,097 21.6 (8.6 ) 14.4
Total revenue $ 203,386 $ 38,586 $ 241,972 $ 225,499 $ 40,643 $ 266,142 (9.8 ) (5.1 ) (9.1 )
(A) 2008 twelfth period: November 24, 2008 to December 28, 2008.
2007 twelfth period: November 26, 2007 to December 30, 2007.
(B) Twelve periods of 2008: December 31, 2007 to December 28, 2008.
Twelve periods of 2008: January 1, 2007 to December 30, 2007.
 
NOTE:

Publishing segment information is provided to facilitate comparison of our publishing segment results with those of other publishing companies and is not representative of the overall business of Journal Communications or its operating results.

Journal Communications, Inc.
Broadcasting Segment Information (unaudited)
(dollars in thousands)
                 
 

Broadcasting revenue by television and radio:

 
Twelfth period of 2008 (A) Twelfth period of 2007 (A)
% Change % Change % Change
Television Radio Total Television Radio Total Television Radio Total
 
 
Revenue $ 9,727 $ 7,224 $ 16,951 $ 12,320 $ 7,931 $ 20,251 (21.0 ) (8.9 ) (16.3 )
 
 
Twelve periods of 2008 (B) Twelve periods of 2007 (B)
% Change % Change % Change
Television Radio Total Television Radio Total Television Radio Total
 
 
Revenue $ 130,585 $ 79,329 $ 209,914 $ 134,057 $ 84,061 $ 218,118 (2.6 ) (5.6 ) (3.8 )
(A) 2008 twelfth period: November 24, 2008 to December 28, 2008.

2007 twelfth period: November 26, 2007 to December 30, 2007.

(B) Twelve periods of 2008: December 31, 2007 to December 28, 2008.

Twelve periods of 2008: January 1, 2007 to December 30, 2007.

 

NOTE: Broadcasting segment information is provided to facilitate comparison of our broadcasting segment results with those of other broadcasting companies and is not representative of the overall business of Journal Communications or its operating results.

Source: Journal Communications, Inc.

Journal Communications, Inc.
Andre J. Fernandez
Executive Vice President, Finance & Strategy
and Chief Financial Officer
414-224-2884