Tribune's third-quarter earnings drop 7 percent as ad revenue slows

Newspaper publisher Tribune Co. announced Wednesday its third-quarter earnings dropped 7 percent as the ongoing housing slump and worsening consumer spending continued to hamper advertising revenue, particularly in Florida and California.

Net income fell to $152.8 million from $164.3 million in the year-ago period. The per-share figure nearly doubled to $1.22 from 65 cents because the number of shares outstanding fell by half.

Earnings from businesses operated in both periods rose to 69 cents per share from 65 cents per share last year. The latest quarter included one-time items that added 31 cents per share to earnings.

Analysts, whose estimates typically exclude items, expected earnings of 26 cents per share, according to Thomson Financial.

Revenue slipped 4 percent to $1.28 billion from $1.33 billion last year, but exceeded Wall Street's estimate of $1.25 billion. Advertising revenue fell 9 percent to $674.5 million, from $741.2 million a year earlier.

A downturn in the housing market has dampened real estate advertising, compounding a larger problem for the industry as ad spending and readers migrate to the Web.

Tribune owns the Chicago Tribune, Los Angeles Times and various other newspapers and television stations, along with the Chicago Cubs baseball team. In August, the company's shareholders approved a $8.2 billion buyout led by real estate magnate Sam Zell.