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Tribune Records $ 237 m Profit
Journal Register Co. Also Has Strong Quarter
Three media companies, The New York Times Co.,
Tribune Co., and Journal Register Co., reported a rise in
third-quarter profits even as the economic slowdown continued to crimp
advertising revenues, a key source of income.The newspaper companies
gave several reasons for the gains, ranging from cost-cutting to
higher ad rates and indications that the advertising slump might be
steadying. Although all three remained cautious about making
projections of any significant turnaround, there was some confidence
that the business environment was improving rather than worsening.
Tribune Co. Media giant Tribune Co. posted a $ 236.8 million profit
for the third quarter as the advertising slump eased and television
stations provided a strong boost to earnings and revenue.
Net earnings amounted to 71 cents a share, compared with a loss of $
138.9 million, or 49 cents a share, for the same period of 2001.
Excluding non-operating items, such as gains from the sales of
subsidiaries and investments, earnings were 46 cents a share, beating
the 38 cents forecast by analysts surveyed by Thomson First Call.
Adjusted to reflect new accounting standards adopted in 2002, the 2001
results were a loss of $ 85.1 million, or 31 cents per share.
Operating revenues were $ 1.34 billion, up 5 per cent from $ 1.28
billion. The company said fourth-quarter results will be between 46
cents and 56 cents per share and full-year results will be between $
1.65 and $ 1.80 a share. The consensus at Thomson First Call puts the
fourth quarter at 50 cents per share and the full-year at
$ 1.71.
Tribune shares fell 62 cents to $ 46.50 in afternoon trading on the
New York Stock Exchange.
Analyst James Goss of Chicago-based Barrington Research Associates,
noting that the stock had climbed nearly 20 per cent in the past week
on speculation of a good showing, said it appeared to be a case of
investors buying on the rumours and selling on the news.
Tribune, whose holdings include 23 TV stations, 11 daily newspapers,
and the Chicago Cubs baseball team, said the results show the
resilience of its media businesses despite a difficult economic
environment.
For the nine months ending September 29, revenues were $ 3.95 billion,
compared with $ 3.94 billion at the same point a year ago. Net income
was $ 249.4 million, or 73 cents per share, compared with $ 4.36
million, which came to a loss of 5 cents a share after the company
paid dividends.
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Condom Ads Coming To Newspapers?
CHICAGO — One of the oddities of gay newspapers is
that while their news and feature stories repeatedly stress the
importance of condoms for safe sex, they never run any condom ads.
Condom manufacturers have rebuffed every overture, often claiming they
just don’t have the budget to advertise in gay papers, said Todd
Evans, president and CEO of the Rivendell Marketing Co., a media rep
firm used by more than 200 local gay and lesbian newspapers and
publications.
"It just makes no sense because since the early 1980s, the biggest
users of condoms has been the gay market," said William Waybourn,
president of Window Media LLC, which publishes The Washington (D.C.)
Blade and four other gay newspapers. Now, at long last, the biggest
condom brand has committed to an ad schedule in two national gay
magazines, Michael Wilke reported in his online column on gay
advertising, "The Commercial Closet. "Trojan, which has some 68 per
cent share of the condom market, is advertising its Trojan Personal
Lubricant in The Advocate and Out magazines under the theme
"Slipperier when wet."
Tracy Baim, publisher of the Windy City Times weekly in Chicago, said
she is hopeful the national ads will trickle down to local papers:
"Here it is 2002 and gay papers have IBM and major banks as
advertisers — all these conservative institutions have hit the gay
market before the condom companies."
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PC Buyers/Sellers Happy: Prices Down, Sales Up
Both computer buyers and sellers have reason to be happy. With the
price of computers hitting new lows, sales are up marginally in the
first half of this fiscal compared to last year. Although no clear
numbers are available yet, there are enough indications of the rise in
offtake.
Assembled computers have never been so affordable
and the prices will continue to slide for quite some time, market
experts say, adding that the offtake is marginally up this year. A
computer with top-of-the-line configuration (Pentium4 2GB processor,
128 MB RAM, 40 GB hard disk with all standard components) can be
brought home for anywhere between Rs. 30,000 and Rs. 35,000. A system
with a comparable configuration used to cost between Rs. 35,000 and
Rs. 40,000 last year.
The main reason for the fall in prices—to the tune
of
Rs. 5,000 per computer in the last two to three quarters—is the
substantial reduction in prices of peripherals like monitors, hard
disks, keyboards, etc. Even the prices of optional add-ons like
CD-ROMs, UPS and deskjet printers have plunged in the last few months.
Market sources also point out that the total cost
of ownership for a computer has also come down substantially as the
add-on peripherals like printers and UPS systems are much cheaper now.
Increased competition from AMD processors and the
Linux operating system in a market that was almost monopolised by
Intel and Microsoft, is also bringing down the prices.
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HBO Celebrates Deepawali with Gladiator
Come Deepawali and HBO will present a blockbuster to begin the festive
season on the channel. Gladiator, the movie which won five
Ackademy Awards is the attraction on Diwali night. Claims HBO, "The
promotions are huge and the time is apt".
Why Gladiator at this time? Says Shruti
Bajpai, Director, Marketing, HBO South Asia, "This is a time when
people are in a relaxed, festive and enjoyable mood. So this period
and movie…I personally loved the movie and I don’t see any reason why
people won’t like it." Well, that is something we have to wait and
watch.
But yes, the company claims that the promotions for
the movie are huge. And for the first time they are airing a contest,
‘Home to Rome’ on the channel, which started on the 20th of October
and will run till the 10th of November. "We are promoting it in six
cities across the country through print, radio, outdoors, cross TV
promotion, theatres and the Net", adds Bajpai. The list of six cities
includes Delhi, Mumbai, Kolkata, Chennai, Bangalore and Hyderabad.
On the contest, Bajpai says: "The contest, which we
will be running is different from the normal contest where you have
1st, 2nd and the 3rd prizes. Here we have 16 tickets to Rome as
prizes." She adds, "we have especially chosen Rome as the prize
destination as we want the people to go and experience the place where
this movie was made." Contest2win is the online partner. The TV
channels which will be used for promoting this line up include
Discovery and MTV. The channel believes that this will be the ‘most
significant promotion of the year.’
A good crop of advertisers have already signed up
with HBO, including Samsung Plano, Bajaj Pulsar mobike, Asian Paints
and Fast Track from Titan. Besides Gladiator, the channel will
also celebrate ‘Children’s Day’ with six movies including Matilda
and The Education of Little Tree’ |
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