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Tribune Updates Business at Media Week
Conference
Company highlights cost-control
initiatives and growth opportunities
CareerBuilder critical
to growing classified revenues
CHICAGO, December 6, 2001 -- Tribune
(NYSE: TRB) executives
provided an update on the company's outlook at the Credit
Suisse First Boston Media Conference in New York City earlier
this afternoon. Chairman and CEO John Madigan addressed the
company's overall strategy. President and COO Dennis FitzSimons
discussed the publishing, broadcasting and interactive businesses,
and CFO Don Grenesko reviewed key financial information.
"Our strategy of focusing on media businesses
in major markets sets Tribune apart," said Madigan. "We
have the power to cross-sell advertising and cross-promote
our brands in a way few other media companies can. When the
economy rebounds, the major markets, especially the top three,
will come back faster than the rest of the country."
Madigan said Tribune has been extremely focused
on controlling costs this year and the company is ahead of
its original plan for reducing expenses announced at the time
of the Times Mirror acquisition in June 2000. Tribune has
reduced headcount throughout the company and last month implemented
measures to control compensation costs.
Madigan also emphasized Tribune's commitment
to growing revenues in classified advertising through its
partnership with Knight Ridder in the online recruitment business
CareerBuilder.
"CareerBuilder is a critical component
of our strategy to win in classifieds," said Madigan.
"We put the power of our newspapers behind the company,
re-branding our Sunday help-wanted sections 'CareerBuilder'-a
move worth about $50 million in cross-promotional value."
FitzSimons highlighted the growth opportunity
in the retail preprint advertising market. Tribune expects
to improve its share in each of its 11 newspaper markets.
By increasing zoning capabilities, improving reliability and
accuracy of delivery, Tribune Publishing expects about $75
million in new preprint revenue in Los Angeles and Chicago
over the next several years.
Tribune's 23 television stations are well positioned
for ratings growth because of improved programming lineups,
he said. Tribune owns a 25 percent interest in The WB Television
Network.
"The WB was the only network to show audience
growth last season, and we just had an excellent November
sweep-continuing to be the number one network among teens,"
said FitzSimons. "In early and late evening programming,
both 'Friends' and 'Everybody Loves Raymond' performed very
well during the November rating period, ranking #1 and #2,
respectively, among all syndicated shows with females 18-34."
Tribune Interactive revenues are up about 25
percent year-to-date. The interactive division is growing
classified revenues and managing costs in order to become
operating cash flow positive by the end of 2002.
Grenesko affirmed Tribune's fourth quarter
2001 earnings per share will fall within the current range
of analysts' estimates but did not give specific guidance
for 2002.
"Because of cost control measures in place
for next year, lower newsprint prices, and reduced losses
in Tribune Interactive, we think cash flow and earnings will
grow modestly, even with flat revenues," said Grenesko.
"If the economy recovers quickly, earnings could increase
in the high single digit to low double digit range."
The company also took part in a joint presentation
today with Knight Ridder at the UBS Warburg Media Conference.
The focus there was on CareerBuilder and its strong position
in the on-line recruitment marketplace.
The full text of the Credit Suisse First Boston
presentation is available at www.tribune.com.
:: :: ::
TRIBUNE (NYSE:
TRB) is one of the country's premier media companies,
operating businesses in broadcasting, publishing and on the
Internet. It reaches more than 80 percent of U.S. households,
and is the only media company with television stations, newspapers
and Web sites in the nation's top three markets. Tribune media
span 23 major-market television stations, including national
superstation WGN-TV; 12 market-leading daily newspapers, including
the Los Angeles Times, Chicago Tribune and Newsday; and news
and information Web sites in 18 of the nation's top 30 markets.
This press release contains certain comments
or forward-looking statements that are based largely on the
company's current expectations and are subject to certain
risks, trends and uncertainties. Such comments and statements
should be understood in the context of Tribune's publicly
available reports filed with the SEC, including the most current
annual report, 10-K and 10-Q, which contain a discussion of
various factors that may affect the company's business. These
factors could cause actual future performance to differ materially
from current expectations.
Tribune Company is not responsible for
updating the information contained in this press release beyond
the published date, nor for changes made to this document
by wire services or Internet service providers. More information
on Tribune is available on the Internet at www.tribune.com. |
