DNA revenue falls by nearly 8 percent

David Milstead, Rocky Mountain News

Published October 1, 2007 at midnight

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Revenue at the Denver Newspaper Agency dropped nearly 8 percent in the 12 months ended in June, to $386.4 million from $419.1 million in the prior year.

The results are included in the annual report of Media- News Group, owner of The Denver Post and a 50 percent owner of the agency. The other owner is E.W. Scripps, parent of the Rocky Mountain News.

Net income at the agency, which does not reflect the cost of operating the newsrooms, fell nearly 43 percent, to $12.27 million, in the 12 months ended in June, from $21.75 million in the prior year.

Neither company discloses their Denver newsroom expenses. But MediaNews said it lost $10.42 million combined on its Denver and Salt Lake City newspaper operating agreements, a smaller loss than the $23.30 million in the 12 months ended June 30, 2006.

MediaNews, which publishes 57 daily and about 95 non-daily newspapers in 12 states, said it posted net income of $19.73 million, up from $1.08 million a year earlier.

Revenue increased 59 percent, to $1.33 billion, from $835.9 million. Operating cash flow increased 88 percent, to $144.9 million from $77.3 million.

The revenue, net income and cash flow gains came from the addition of four daily newspapers, including the San Jose Mercury News and St. Paul Pioneer Press.

Vice Chairman and CEO William Dean Singleton received compensation of $1.83 million, including a salary of $1,061,250 and a stock award of $484,000. President Joseph J. "Jody" Lodovic IV received $2.23 million, including a salary of $722,100, bonuses of $1.1 million and stock awards of $302,500. Gerald Grilly, the former executive vice president and chief operating officer, received $1.76 million, including $1.48 million in severance.

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