Tribune Media Exploring Strategic Alternatives; Swings to a Loss
February 29 2016 - 10:40AM
Dow Jones News
Tribune Media Co. on Monday said it is exploring strategic
alternatives as the television and entertainment company reported
it swung to a loss in the final quarter of the year.
Results beat expectations, and shares in the company added 9.4%
in early trading to $36.03—though they are still down 45% in the
past 12 months.
Tribune said it would review "the full range of strategic and
financial alternatives to enhance shareholder value," as Chairman
Bruce Karsh said "the value of the portfolio of businesses of
Tribune Media is not fully reflected in the stock price."
The broadcaster also announced a $400 million stock-buyback
program and a shuffling among three of its top executives.
Chief Executive Peter Liguori began a new two-year employment
agreement while the company named Chandler Bigelow chief financial
officer. General Counsel Eddie Lazarus added the chief strategy
officer title.
Tribune, like other peers in the media industry, has sought to
focus less on print products. Last summer, Tribune Media shed its
publishing business—which included newspapers such as the Los
Angeles Times and the Chicago Tribune—through a spinoff.
In the most recent period, the company's
television-and-entertainment business reported revenue skidded 3.4%
to $464 million. The company said the decline was driven by a $46.5
million decrease in political advertising as 2015 is an off-cycle
political year.
Tribune's digital and data businesses, meanwhile, saw revenue
jump 18% to $71.1 million, driven by an increase in music revenue
associated with auto contracts as well as the favorable impact of
the acquisitions closed in the second quarter.
In all for the latest quarter, the company reported a loss of
$380.9 million, or $4.07 a share, compared with a year-earlier
profit of $314.7 million, or $3.14 a share. Adjusted earnings fell
to 63 cents a share from 81 cents.
Revenue edged down 1.1% to $547.6 million.
Revenue was further offset by one-time costs, including a $385
million noncash impairment charge in the television and
entertainment business. The company more than doubled operating
expenses in the quarter while overhead expenses shot up 38%.
Analysts projected adjusted earnings of 55 cents a share on
$543.1 million in revenue, according to Thomson Reuters.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
February 29, 2016 10:25 ET (15:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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