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Denver Newspaper Agency's financial performance improves

By David Milstead, Rocky Mountain News (Contact)

Published January 31, 2008 at 9:32 a.m.
Updated January 31, 2008 at 9:32 a.m.

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Denver's newspapers showed continued financial improvement in the 4th quarter, E.W. Scripps reported today.

Scripps, parent of the Rocky Mountain News, said its share of earnings from the Denver Newspaper Agency were $9.20 million in the fourth quarter, up from $3.04 million in the fourth quarter of 2006.

The agency, owned in a 50-50 partnership by Scripps and Denver-based MediaNews Group, owner of The Denver Post, manages the business operations of the two papers. Its earnings come before newsroom expenses are deducted. The two companies do not disclose newsroom costs.

For the full year 2007, Scripps' share of agency earnings increased to $19.43 million, up from $8.98 million in 2006. Third-quarter results also showed a year-over-year gain.

The agency purchased and installed new printing presses over the last two years, creating special non-cash depreciation charges of $4.0 million in 2007 and $12.2 million in 2006. Without the special depreciation charges, agency earnings increased 11 percent, according to an analysis by the Rocky.

Cincinnati-based Scripps said its fourth-quarter preliminary net income was $123 million, or 75 cents per share, compared with $134 million, or 81 cents per share, during the same period a year earlier.

The company says it will take a non-cash writedown on the value of its U.K.-based uSwitch business. Scripps will calculate the figure in time for the filing of its annual report with the Securities and Exchange Commission Feb. 29.

Scripps' total newspaper revenue declined 9.6 percent to $165 million. Advertising revenue at newspapers managed solely by Scripps was $131 million, down 12 percent from the prior-year period.

Total newspaper segment profit was $44.7 million compared with $50.9 million in the prior-year period.