Providence Journal May Be Sold as A.H. Belo Seeks to Raise CashCrayton Harrison
A.H. Belo Corp. is exploring a sale of the Providence Journal, its only remaining newspaper outside of Texas, to raise cash for potential advertising and marketing acquisitions.
Proceeds from a sale could also go to share repurchases, the company said today in a statement. Shedding the Providence Journal, a Rhode Island newspaper that is one of the nation’s oldest, would also let A.H. Belo executives focus on their home market of Dallas, the company said.
A.H. Belo is seeking to expand beyond newspapers as competition from the Internet cuts into advertising revenue. The publisher sold the Press-Enterprise of Riverside, California, for $27.3 million last month. Selling the Providence Journal would leave it with the Dallas Morning News and the Denton Record-Chronicle, both in north Texas.
To reflect declining revenue and the sale of the California unit, the company reduced its earnings forecast for the year to a range of $26 million to $29 million, leaving out interest, tax, deprecation and amortization. That was down from an earlier forecast of $37 million to $41 million.