A continued weak advertising environment resulted in an 8% decline in first-quarter operating revenue and a 16% drop in operating cash flow for Tribune Co., parent of the Los Angeles Times, KTLA-TV Channel 5, the Chicago Tribune and other media holdings.
However, because of Tribune's conversion to a tax-advantaged, employee-owned company in December, it posted a one-time, $1.86-billion income tax adjustment that resulted in net income of $1.82 billion for the quarter that ended March 31, compared with $11 million in the same 2007 period.
Quarterly operating revenue was $1.11 billion, compared with $1.21 billion a year earlier, and operating cash flow was $200 million, down from $239 million.
"Print ad revenues continue to be challenged by the weak economy's impact on real estate and classified advertising," Tribune Chairman and Chief Executive Sam Zell said in a statement accompanying Thursday's earnings report. "Broadcasting operating results are notably more stable."
