This NYT look at Los Angeles Times publisher David Hiller illustrates some of the problems faced by major newspapers in today's media business climate.
Tribune does not report each property’s performance, but through November, the company said that 2007 newspaper ad revenue had fallen 8.5 percent (compared with about 7 percent in the entire industry) and that Los Angeles had among the sharpest declines in retail and classified ads. Mr. Hiller said he expected another drop in 2008.
A person who had been shown the numbers said The Times had earnings of $240 million in 2006 and $192 million in 2007 (before interest, taxes, amortization and depreciation), and projected about $150 million this year before the announced cuts — figures that Mr. Hiller said were roughly accurate.
Former executives say that the paper had an operating profit margin above 20 percent until two or three years ago and that it is in the midteens now. Some executives within Tribune said the company wants The Times to match last year’s cash flow, a tall order in this economic climate.