The Sun-Times Media Group, Inc. today announced a net loss of $59.1 million in the fourth quarter, 2007. In the comparable quarter in 2006, the company reported a loss of $34.6 million. The operating loss of the company also widened in 2007 to $42 million in 2007 from $21.4 million in 2006.
The STMG, formerly known as Hollinger International, Inc., (symbol NYSE: SVN) said 2007 results reflected significant costs associated with the criminal trial of past management and the write down of a loan to a subsidiary of Hollinger, Inc.
The caretaker president of the company, Cyrus F. Freidheim, Jr., said, "we have continued to invest in prospective high growth areas, including our increasingly successful online presence." Results show advertising revenues fell 15.7 percent in the fourth quarter from the fourth quarter 2006; circulation revenues fell 13.5 percent. The only positive, online advertising increased $3.3 million, according to the company.
The company increased certain operating costs, especially direct response marketing, $15.2 million, and severance costs, $6.4 million. The costs to transition distribution to the Chicago Tribune were $400,000, the statement said. Having a 53-week year, compared to a 52-week year in 2006, effected the 2007 fiscal results.