• by Paul Gough , January 29, 2004

Tribune Co.'s publishing and broadcasting units -- and the postseason drive by the hapless Chicago Cubs -- lifted fourth-quarter revenues, the company said Wednesday.

Overall revenues rose 2.8 percent to $1.47 billion in the fourth quarter compared to $1.43 billion in 2002. Publishing revenues, which include a portfolio of daily and weekly newspapers along with interactive sites, rose 2.3 percent to $1.08 billion in the fourth quarter compared to a year ago. Broadcast/Entertainment revenues were up 4.2 percent to $33 million, which was boosted because the Chicago Cubs made it to the second round of the National League playoffs. Tribune owns the Cubs and its national broadcast outlet, WGN.

Advertising revenues were up 5 percent at the Chicago Tribune, 4 percent at (Long Island) Newsday and 1 percent at the Los Angeles Times. For the newspaper group, overall ad revenues rose 3.3 percent in the quarter to $851.47 million. Retail advertising grew 1.5 percent to $388.5 million in the quarter even though Tribune has had to weather declines in retail advertising and the grocery strike in southern California. National advertising increased 7.3 percent to $221.73 million with strength in movies/entertainment, finance and high-tech but slower travel and auto.

Classified ad revenues rose 3 percent to $241.23 million in the quarter, with single digits increases in auto, real estate and even help-wanted, a category that has dragged the newspaper industry since 2000. Overall help-wanted revenues rose 3 percent for the group, up 4 percent in New York and 2 percent in Los Angeles, while help-wanted ad revenues dropped 7 percent in Chicago.

Classified revenues and banner advertising helped push interactive revenues up 37 percent to $26 million in the fourth quarter.

President/CEO Dennis J. FitzSimons took note of the progress of some of Tribune's higher-profile rollouts in recent months, disclosing the free tabloid amNewYork's circulation is already 170,000 and that ad revenues for the 17,000-circulation for the Chicago edition of Hoy is exceeding internal expectations. He pointed out that in March, Hoy will roll out in Los Angeles, the largest Hispanic market in the United States.

Ad revenues from Tribune's broadcast station group -- which has properties in Indianapolis, St. Louis, Portland, New York and Chicago, among others -- rose 4.1 percent to $353.29 million in the fourth quarter. That compares to the fourth quarter of 2002, which was up 22 percent compared to the year before. Radio/Entertainment revenues were up 4.2 percent to $33.01 million in the quarter.

Tribune expects revenue growth across the entire company to be 6 percent for 2004.

FitzSimons said that publishing's ad revenues were up slightly over the first our weeks, and help wanted started slow but seems to now be moving in the right direction. He said strong results were being seen preliminarily with CareerBuilder, the online jobs site that recently reached deals with AOL and Microsoft. Television pacings in January were positive, he said, but a little softer than expected.

"We're optimistic that the quarter will end strong as the March comps are a little easier due to the Iraq war" in March 2003, he said.

Tribune, which owns the Chicago Tribune, has been mentioned as a potential suitor for rival Chicago Sun-Times following the implosion of the Sun-Times' owner Hollinger and controversy surrounding former owner Conrad Black. In response to a question Wednesday morning, FitzSimons was noncommittal.

"That is so murky," FitzSimons said, apparently referring to continuing internal struggles well reported at Hollinger. "I don't know if it would make sense for us to comment until we know how this process is going to shake out."