Stock soars: As Progress parent company back in black
Media General, the parent company of the Daily Progress, has conducted such extreme cost-cutting measures that not only does it not appear to be in imminent danger of bankruptcy, but it actually reports that it turned a profit in the second quarter–- despite publishing revenues about 20 percent lower than they were a year ago.
Following the release of the quarterly report, Media General's stock price shot from just over $2 per share to over $5 per share.
"We continue to have a viable business," says Progress publisher Lawrence McConnell, noting that the venerable daily turns a profit.
His newspaper reportedly saved about $3 million in capital costs a year ago, when Media General shuttered its aging Charlottesville printing and mailing operation, which also served the company-owned Waynesboro daily. The move cost about 25 local jobs.
The good news for Media General was followed by profit announcements by such industry peers as as the McClatchy Co. and Gannett Co. both of which revealed Q2 profits despite drops in ad revenue similar to what Media General experienced. However, the partent company to the Dallas Morning News, A.H. Belo, reported a second quarter loss.
–last updated July 27 at 4:36pm