Tribune Profits Down 59 Percent on Lower Classified Sales, Will Zell Bolt?
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The Tribune Co. advertising revenue took a beating in the second quarter as classified sales dropped significantly. Real Estate advertising is a big part of the classified sales and with the recent news out of Realogy that they will be cutting back on newspaper advertising the landscape will continue to get bleaker.
Now here comes the ironic part of the story. Sam Zell cashed out of his Equity Office commercial real estate empire at a great profit only to successfully bid on the Tribune company and it’s newspapers. Now that the Tribune Company is hemorrhaging money and expected to continue it’s downward slide, will this get Zell out the of the deal that is expected to close in the 4th quarter?
Newspaper ad sales companywide fell 11 percent as classifieds accelerated their migration to the Internet. Plummeting real estate ads at Tribune publications in California and Florida paced the slide. The company also owns the Orlando Sentinel and Sun- Sentinel in Fort Lauderdale.
Sales of classified ads in Tribune’s newspaper group, which includes 11 metropolitan dailies, slid 18 percent, with real estate ads sinking 24 percent. Help-wanted ads dropped 16 percent and auto classifieds fell 12 percent.
Analysts had forecast total sales of $1.34 billion, based on the average of seven estimates compiled by Bloomberg. via Bloomberg.com
It probably is a really good time to buy real estate - monthly payments are about equal to market rents ...
The part about the inventory is right on but in my area they are mostly low end and beat up ...
I worked for this man, he is a great con man and has done this in more than States then ...
You're right. If you come from Central Jersey (as the Boss and I do), you go to Florida at some ...
Maybe it was kryptonite...
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By Mike ...
I couldn't agree more.
The newspaper has always "stuck" it to the real estate agent with rates that were much higher ...
By the way, homeowners trying to get short sale approval should be aware that lenders are comparing the initial loan ...
Ouch! Thankfully I haven't come across anything like that yet. We normally don't have situations like that in ...
well, the guy was here illegally.
serves him right. 
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Comment by Jayson Gibson on 20 September 2007:
I was reading about the decline in newspaper print advertising. Thanks for the stats. I wonder how newspaper companies are going to make up for the lost income? Maybe they’ll start charging users to access news online?