The E.W. Scripps Company, parent company of the Knoxville News Sentinel, reported a loss of $10.1 million for the first quarter of 2011 as compared to a loss of $1.2 million for the same quarter in 2010.
It would have been worse, but their TV station revenues, which increased 3.2% as compared to the same quarter in 2010, are propping up newspapers, which had a 5.7% decline in revenues.
Shortly after reporting their first quarter results, Scripps announced a change in management, saying that "Mark G. Contreras is no longer serving as the senior vice president of its newspaper division." Scripps shut down two newspapers, the Cincinnatti Post and the Rocky Mountain (Denver) News on his watch.
Scripps shares closed at $8.89 on Friday, down from a high of $10.46 in January, with a current market cap of $525.74 million. Their current P/E of 4.7 suggests a possibility of low investor confidence. For comparison, Scripps Networks Interactive is trading at a P/E of 19+.
But wait, there's more.
The Memphis Commercial Appeal, also owned by Scripps, announced on Twitter this week that they are putting the online version of their paper behind a paywall. Subscription will be $9.99 per month or free for subscribers to the print edition. Readers will get ten free clicks per month, and there may be day passes for 99 cents. The Memphis Steves have reaction and commentary here and here.
Will the Knoxville News Sentinel be next?
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