E.W. Scripps, parent of the Rocky Mountain News, said Friday that it would cut 400 jobs and eliminate its dividend amid a deepening advertising slump.
Cincinnati-based Scripps reported a $16.8 million loss on revenues of $230 million in the third quarter. Revenues fell 9 percent overall compared with the same quarter a year ago, driven largely by a 17 percent decline in newspaper revenues. Net profit in the third quarter 2007 was $88.4 million.
Classified ads were especially hard hit, with auto ads falling 28 percent, real estate down 36 percent and help- wanted ads off 46 percent. Online advertising fell 12 percent in the quarter.
The Rocky Mountain News, which shares circulation and advertising with The Denver Post under the Denver Newspaper Agency, said it would be spared job cuts. Scripps said it took a $24.9 million noncash charge during the quarter for the diminished value of its Denver operations.
