Exec: Providence Journal could be sold by April or May

February 17th, 2014 at 1:15 pm by under Nesi's Notes, On the Main Site

A.H. Belo is moving ahead with its plan to try and sell The Providence Journal.

“We’ve been working very diligently,” Alison Engel, A.H. Belo’s chief financial officer, told investors last week when asked about where things stand with The Journal. “We really didn’t get started on the process until after year-end for a variety of reasons, including just the holidays and having to complete the 2013 close, etc.”

A.H. Belo, which has owned The Journal since 1997, put the paper up for sale in December as part of an effort to refocus the company on its flagship newspaper, the Dallas Morning News, and its market.

Engel said A.H. Belo executives have “made a lot of progress” in working with Stephens Inc., the investment bank that’s shopping The Journal, to put together a presentation about The Journal’s finances that will be given to potential investors. She said those who’ve expressed interest in buying the paper would likely receive the detailed information by the end of this week.

“That’s a process that will start … and we would expect it to wrap up, I would assume, sometime in April or May,” she said. The company has said it will only sell The Journal if the price is right.

Engel also reiterated that The Providence Journal is still a profitable business. “Providence is more profitable than Riverside was, less profitable than The Dallas Morning News,” she said, referring to the Riverside Press-Enteprise, which A.H. Belo sold last year. “But yes, they are profitable.”

A.H. Belo posted a profit of $16.1 million in 2013, up from $526,000 in 2012. The company’s profit from continuing operations, which excludes The Press-Enterprise, fell from $8.4 million to $7.2 million. Total revenue from A.H. Belo’s continuing operations fell 2% to $366 million.

The Journal’s digital revenue declined but its circulation revenue rose thanks to an increase in home-delivery rates, as did its revenue from distributing other newspapers, A.H. Belo said. The company said it’s also continuing its separate effort to sell The Journal’s headquarters on Fountain Street.

Ted Nesi ( tnesi@wpri.com ) covers politics and the economy for WPRI.com and writes the Nesi’s Notes blog. Follow him on Twitter: @tednesi

• Related: A.H. Belo puts The Providence Journal up for sale (Dec. 4)

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7 Responses to “Exec: Providence Journal could be sold by April or May”

  1. Big fan of Ted says:

    Ted, are you going to post the most recent circulation numbers when they become available?

  2. robert says:

    The circulation numbrs have been awful for the past few years

    1. Big fan of Ted says:

      True, so I think the public needs to know what they were at the most recent audit. It could factor, good or bad, into the possible sale of the newspaper.

  3. Steve Lemois says:

    The Journal has not realized they are pandering to the wrong demographic. Low info voters don’t subscribe to newspapers.

  4. Bea says:

    Perhaps the New Owners will allow full participation once again, i.e. allow comments by social media Non-users.
    The Projo comments are now only evocative of this un-diverse group of facebookers and twitterers.

  5. [...] Boston magazine. As I reported earlier this week, The Providence Journal’s Dallas owners are getting ready to send out the sale book to potential Projo buyers, and Schwartz’s piece is a reminder of just how much is at stake [...]

  6. [...] York Stock Exchange trading since closing at $8.05 on Feb. 11, a day before the company announced a $16 million annual profit for 2013 and gave an update on its efforts to sell The Journal. The stock was at $10.49 at 11:56 a.m. [...]