CINCINNATI (AP) - Media company E.W. Scripps said Friday it lost $256
million on a big write-down in the value of its United Kingdom shopping Web
site.
The loss of $1.56 a share in the fourth quarter compares to a profit of
$133.9 million, or 81 cents, at the same time a year earlier.
Cincinnati-based Scripps reported a preliminary profit of $123.3 million, or
75 cents a share, on Jan. 31.
Scripps said it recorded a $411 million, pretax charge from its uSwitch
operations. It bought the shopping site, which helps consumers in the United
Kingdom compare prices for insurance, loans and utility costs in 2006.
Reduced levels of energy switching activity at uSwitch throughout 2007
resulted in the non-cash write-down of the business' carrying value, Kenneth
Lowe, Scripps' president and chief executive officer, said in a statement
Friday.
"We anticipate a return to profitability at uSwitch during the first quarter
of 2008, and in the meantime have tactically aligned the costs of operating the
business with lower levels of anticipated revenue," Lowe said.
The company's loss for the full year, including the effects of the non-cash
charge, was $1.6 million, or 1 cent per share, compared with earnings of $353
million, or $2.14 per share, in 2006.
The charge reduced net income for 2007 by $382 million, or $2.32 per share.
Scripps shares were down $1.23 cents, or 2.86 percent, to close at $41.77 on
Friday.
http://www.scripps.com
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