Profits for Journal Communications Increase

The Journal Communications Incorporation recently made an announcement about its profits. The profits for the Journal Communication Incorporation has increased by a total of 24 percent during the last quarter, which was definitely good news. It is believed that the reason behind the major increase was due to the amount of money put toward political advertising since it is an election year. Both presidential candidates have spent millions of dollars on advertising for their campaigns and because of that; the Journal Communications Inc. has been able to benefit from it. With the money being spent on political advertisements, the company has been able to earn much more during this quarter than they did during this same exact quarter during the previous year, which has caused some optimism to occur.

The publisher for the Milwaukee Journal Sentinel, which is the biggest newspaper in all of Wisconsin, has recently reported receiving net earnings of over $7.5 million, which would be equivalent to around 13 cents a share. This was an increase of about $6.1 million from the second quarter during last year. The CEO for the company, Steven Smith, has already said that the second quarter has been ultimately stronger because of the major increase in political advertisements. Aside from owning the newspaper, the company is also the owner of dozens of different radio stations and television stations in different areas around the United States. The broadcasting revenue for Journal Communications also increased along with the newspaper revenue increases, because it increased by about 18 percent.

Political advertisement revenue made up for about $5.7 million worth of all broadcasting revenue earned, which was a huge increase from the previous year when only around $900,000 was earned in revenue instead. Along with the political advertisements, Journal Communications also managed to benefit from national advertisements as well, especially as there was an increase of the number of automotive advertisement displayed. Even though the company has done quite well, the company is still dealing with a drought when it comes down to advertising. Many newspapers have been dealing with similar fate, especially as advertisers are beginning to choose digital advertising over the traditional method of advertising in newspapers. The company says that while they are still dealing with this type of advertising drought, they are actively seeking different kinds of opportunities that would help to increase revenue and eliminate debt. They believe that the political advertisements of 2012 will help with that process, especially as the presidential candidates are in constant competition with one another.