Tribune Publishing Co. expects revenue to slip by as much as 3.4 percent in 2015.
The owner of the Chicago Tribune and other newspapers said Wednesday it expects revenue of between $1.65 billion and $1.67 billion in 2015, down from $1.71 billion in 2014. The company also said it expects to reduce expenses by between $65 million and $75 million this year and make capital expenditures of $30 million.
“Tribune Publishing will remain vigilant and focused on executing our comprehensive transformational plan, which includes accelerating our transition to digital,” chief executive officer Jack Griffin said in a statement.
The Chicago-based company reported revenue slipped 5.5 percent to $457 million during the quarter ended Dec. 28 compared with $484 million a year earlier. Net income was $15 million in the recent period, down from $33 million a year earlier.
Advertising revenue in the fourth quarter was down 10.4 percent, the company said. Digital classified advertising revenue increased 2 percent, excluding the effects of renegotiated affiliated agreements with CareerBuilder and Cars.com. Revenue from commercial printing and delivery fell 19.2 percent to $38 million.
For the year, Tribune Publishing’s revenue was down 4.8 percent at $1.71 billion compared with $1.79 billion in 2013. The company earned $42 million in 2014, down from $94 million in 2013.
Tribune Publishing was created in August 2014 when Tribune Co. split its newspaper and broadcast operations into separate companies. Tribune Media owns the TV and radio operations.
Tribune Publishing in November bought 32 suburban weeklies and six daily newspapers from Sun-Times Media’s parent company, Wrapports LLC.
