Belo Q2 profit slips, restates 2007-08 results

Q2 profit down 61%, restates results after accounting error

DALLAS -- TV station owner Belo Corp. reported a 61% drop in second-quarter profit Friday as advertising revenue fell, especially from the struggling auto sector.

The Dallas-based company also said it plans to restate its 2007 and 2008 financial statements because it misapplied an accounting rule relating to how it calculates the value of its FCC licenses in assessing impairments.

Belo said it earned $10.3 million, or 10 cents per share, in the three months ended June 30 compared with $26.4 million, or 25 cents, in the same quarter a year ago.

Revenue fell 23% to $144.8 million from $189 million, hurt by a 53% drop in auto advertising.

Earnings met analysts' expectations on average but revenue fell short of the $149.7 million forecast, according to a survey by Thomson Reuters.

The company said local and national ads in the spot market improved in July from June and May, foreshadowing a better performance in the third quarter than the second quarter.

Its shares rose 13 cents, or 4.8%, to $2.86 in morning trading.

Belo said its 2008 net earnings from continuing operations will be adjusted to include a non-cash charge of $126 million, or $1.21 per share. For 2007, the adjustment will be a non-cash gain of $12.8 million, or 12 cents, to net earnings from continuing operations.

Total goodwill and intangible assets on the company's balance sheets will decline by $197 million for the quarters ended March 31 and Dec. 31, 2008. It will increase by $7.8 million at the end of 2007.