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NEW YORK (AFX) - Sun-Times Media Group Inc., publisher of the Chicago Sun-Times a number of community newspapers around Chicago, said Tuesday it swung to a profit in the second quarter as an income tax benefit offset declining revenue.
The company, formerly Hollinger International, reported net income of $20.6 million, or 24 cents per share, compared with a loss of $15.5 million, or 17 cents per share, in the year-ago period.
Total operating revenue fell to $107.4 million from $117.7 million.
Helping the quarter's results was a $47.6 million improvement in income taxes from the previous year. The improvement was largely a result of the reversal of $43 million of contingent tax liabilities no longer deemed necessary, which boosted earnings by 50 cents per share.
The company said the Chicago newspaper advertising environment weakened from the first quarter, especially in the key auto and entertainment categories.
"The weak advertising market in Chicago has made our advertising sales reorganization extremely challenging and underscores the need to remain committed to our strategy," Chief Executive Gordon A. Paris said in a statement.
Circulation revenue dropped 5 percent in the quarter from a year ago.
The company, which once owned newspapers in Canada, London and Jerusalem, was previously under the control of media tycoon Conrad Black. He was ousted following accusations that he and associates stole millions of dollars from the company. He has denied any wrongdoing.
Sun-Times Media Group shares closed down 14 cents at $7.84 on the New York Stock Exchange. Copyright 2006 Associated Press. All rights reserved. This material may not be
Copyright 2006 AFX News Limited. All Rights Reserved.
