Even Bankrupt Newspapers: Still Profitable

Despite my best efforts:

Tribune doesn’t report profit, but a Crain’s analysis of cash flow
shows the company had an 8% profit margin for the first few months of
the year, which is less than half the 19% margin it boasted in the
first half of 2008.

Tribune is “still profitable, but significantly less so than last year,” Mr. Corbett said.

[snip]

Instead of revenue, the company reports operating receipts, which were
down 14% from the beginning of the year to $1.36 billion as of May 31.
Despite the drop in operating receipts, the company took in $112
million more in cash than it spent between January and the end of May,
bankruptcy filings show.

Okay, I know in Wall Street World this is an epic disaster, but in my world you don’t get sympathy when you make $112 million more than you had to spend, in the shittiest economy in 30 years.

If only we could come up with a way to monetize content! If only people would pay for the news!

A.

5 thoughts on “Even Bankrupt Newspapers: Still Profitable

  1. dr2chase says:

    A, have you perhaps seen a movie called “Fierce Creatures”? If not, you should.

  2. MapleStreet says:

    I’d love the bank to be giving me an 8% profit on my money.
    I know of a lot of industries that are limping along, wounded and leaking money like a sieve, just hoping for the economy to improve soon so that they can stay in business.

  3. whet moser says:

    I may be a financial illiterate, but the phrase “fixed costs” makes me want to punch a wall.

  4. pansypoo says:

    fuck wall street.

  5. RAM says:

    I’m just not buying this whole ‘newspapers going broke’ thing. It sort of reminds me of when the Burlington and the rest of the railroads cut passenger service. My father in law was a Burlington executive working in the passenger department. He told me they were indeed making a profit with passenger train service, it’s just that the passenger service was not as profitable as freight service.

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