TRIBUNE COMPANY Is a Media Industry Leader with Operations in 25 Major Markets Nationwide, Including 10 of the Top 12
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NEW YORK LOS ANGELES CHICAGO PHILADELPHIA BOSTON DALLAS WASHINGTON ATLANTA HOUSTON SEATTLE MIAMI FORT LAUDERDALE DENVER SACRAMENTO ORLANDO ST LOUIS BALTIMORE PORTLAND INDIANAPOLIS SAN DIEGO HARTFORD GRAND RAPIDS NEWPORT NEWS NEW ORLEANS HARRISBURG ALBANY ALLENTOWN GREENWICH STAMFORD NEW YORK LOS ANGELES CHICAGO PHILADELPHIA BOSTON DALLAS WASHINGTON ATLANTA HOUSTON SEATTLE MIAMI FORT LAUDERDALE DENVER SACRAMENTO ORLANDO ST LOUIS BALTIMORE PORTLAND INDIANAPOLIS SAN DIEGO HARTFORD GRAND RAPIDS NEW YORK LOS ANGELES CHICAGO PHILADELPHIA BOSTON DALLAS WASHINGTON ATLANTA HOUSTON SEATTLE MIAMI FORT LAUDERDALE DENVER SACRAMENTO ORLANDO ST LOUIS BALTIMORE PORTLAND INDIANAPOLIS SAN DIEGO HARTFORD GRAND RAPIDS NEWPORT NEWS NEW ORLEANS HARRISBURG ALBANY ALLENTOWN GREENWICH STAMFORD NEW YORK LOS ANGELES CHICAGO PHILADELPHIA BOSTON DALLAS WASHINGTON ATLANTA HOUSTON SEATTLE MIAMI FORT LAUDERDALE DENVER SACRAMENTO ORLANDO ST LOUIS BALTIMORE PORTLAND INDIANAPOLIS SAN DIEGO HARTFORD GRAND RAPIDS Creating Value: 20 Years as a Public Company 2003 Annual Report TRIBUNE COMPANY is a media industry leader with operations in 25 major markets nationwide, including 10 of the top 12. Through newspapers, television, radio and the Internet, we reach more than 80 percent of U.S. households. Revenues in 2003 totaled $5.6 billion. Broadcasting TELEVISION WBDC (WB50) KTXL (FOX40) WTXX (WB20) TELEVISION PROGRAMMING WPIX (WB11) Washington Sacramento, Calif. Hartford, Conn. New York wbdc.com fox40.com wtxx.com Tribune wb11.com Entertainment Co. WATL (WB36) KPLR (WB11) WXMI (FOX17) Los Angeles KTLA (WB5) Atlanta St. Louis Grand Rapids, Mich. tribtv.com Los Angeles wb36.com wb11tv.com wxmi.com ktla.com RADIO KHWB (WB39) KWBP (WB32) WGNO (ABC26) WGN (720 AM) WGN (WB9) Houston Portland, Ore. New Orleans Chicago Chicago khwb39.com wb32tv.com abc26.com wgnradio.com wgntv.com KCPQ (FOX13) WXIN (FOX59) WNOL (WB38) WPHL (WB17) Seattle Indianapolis New Orleans BASEBALL Philadelphia q13.com fox59.com wb38.com Chicago Cubs wb17.com Chicago KTWB (WB22) WTTV (WB4) WPMT (FOX43) cubs.com WLVI (WB56) Seattle Indianapolis Harrisburg, Pa. ktwbtv.com wb4.com fox43.com Boston INVESTMENTS bostonswb.com WBZL (WB39) KSWB (WB5/69) WEWB (WB45) The WB Television KDAF (WB33) Miami San Diego Albany, N.Y. Network (22% owned) wb39.com kswbtv.com wb45.com Dallas TV Food Network (31%) wb33.com KWGN (WB2) WTIC (FOX61) NATIONAL CABLE Denver Hartford, Conn. Superstation WGN wb2.com fox61.com superstationwgn.com Publishing DAILY NEWSPAPERS South Florida The Advocate Hoy CABLE PROGRAMMING Los Angeles Times Sun-Sentinel Stamford, Conn. Chicago CLTV Los Angeles Fort Lauderdale, Fla. stamfordadvocate.com holahoy.com Chicago latimes.com sun-sentinel.com cltv.com Greenwich Time el Sentinel Orlando Sentinel Greenwich, Conn. Fort Lauderdale, Fla. Chicago Tribune ONLINE NEWS AND Chicago Orlando, Fla. greenwichtime.com elsentinel.com INFORMATION orlandosentinel.com chicagotribune.com Tribune Interactive SPANISH-LANGUAGE El Sentinel Newsday Hartford Courant NEWSPAPERS Orlando, Fla. INVESTMENTS Long Island, N.Y. Hartford, Conn. Hoy elsentinel.com newsday.com ctnow.com New York CareerBuilder holahoy.com ENTERTAINMENT (33% owned) The Sun The Morning Call LISTINGS AND CONTENT SYNDICATION Baltimore Allentown, Pa. Hoy Classified Ventures (29%) baltimoresun.com mcall.com Los Angeles Tribune Media holahoy.com Services Daily Press tms.tribune.com Newport News, Va. dailypress.com Tribune Company’s 1983 Annual Report 20 Years of Creating Value Tribune’s history dates back to 1847, but it was just 20 years ago that we became a public company. And as long-term shareholders know, our stock has been a solid investment. Since the initial public offering on October 13, 1983, Tribune shares have generated annualized total returns—change in stock price plus dividends—of 16 percent, compared with 12 percent for the S&P 500 Stock Index. We’ve had three two-for-one stock splits, most recently in 1999. In 2003, TRB’s total return was 14.6 percent. Our stock performance measures up very well with the shares of other major corporations. Tribune’s 16 percent annualized total return ranks 47th out of the 242 companies in the S&P 500 that have traded publicly for the last 20 years. Creating shareholder value is our top priority, and we plan to build on our excellent track record. Tribune’s strong local brands, major-market focus, national scale and financial strength are a powerful combination that will fuel our continued growth. As always, the exceptional commitment and talent of Tribune employees around the country will drive our success. Growth of $100 invested in Tribune’s IPO $ (with dividends reinvested) 2,151 $100 Oct. 13, 1983 Dec. 31, 2003 p.2 TRIBUNE COMPANY To Our Shareholders and Employee Owners Value creation contin- and publishing businesses in the top 30 markets. ued at Tribune in In addition, we’re maximizing content-sharing 2003, our 20th year across our business units and increasing their as a public company. cross-selling and cross-promotion activities. We’re We registered excellent launching new products and building on successful growth in earnings per franchises to answer the changing needs of con- share, improved profit sumers. Finally, we’re keeping a tight lid on expenses margins in both news- and making our operations more efficient. papers and television, In 2003, we: generated $1.6 billion in operating cash flow and reduced debt by about • acquired television stations in St. Louis and $750 million. We achieved these results in a difficult Portland, Ore., the nation’s 21st and 24th advertising market, demonstrating the value and largest markets, respectively; strength of our local media assets. • launched Hoy in Chicago, extending the news- With the U.S. economy gaining strength, we expect paper beyond New York, where it’s the No. 1 2004 to be another successful year. Yet as the range Spanish-language daily. Hoy expands to the of media options for consumers grows, so does the Los Angeles market this spring; challenge of reaching an increasingly fragmented • increased CareerBuilder’s online revenue share audience. Every day, we are mindful that Tribune and surpassed Monster as the leader in total newspapers, television stations and websites compete job postings; against all other media for people’s time and attention. • accelerated growth for Superstation WGN via Our blueprint for growth is straightforward. We have new agreements with cable and direct broadcast aggressive strategies in place to build audience and satellite distributors. The channel expects to grow local advertising share, and our emphasis on add 7 million subscriber households over the high-quality content has never been greater. One of next four years; our objectives is to add scale by acquiring television MORE JOBS, 200 HOURS OF LOCAL ALL THE TIME NEWS EVERY WEEK Job-seeker traffic on CareerBuilder is strong and growing due in part to new Quality local news programming helps Tribune stations connect with exclusive agreements with AOL and the Microsoft Network (MSN). Revenue for their communities. Morning shows in New York, Los Angeles (above) the CareerBuilder network in 2003 was $160 million, up 48 percent. and Chicago are especially popular with viewers and advertisers. 2003 ANNUAL REPORT p.3 • achieved an important labor agreement at The were from “bundled” ad packages combining print, Baltimore Sun, which more closely aligns pay broadcast and online media. with performance and increases operational In television, scale pays dividends in the programming flexibility; and area. As the largest television group not owned by a • invested in amNewYork, a free newspaper network, we enjoy access to the best syndicated and targeting young Manhattan commuters. Daily off-network programming. Our scale also supports a circulation is 170,000, just five months after mutually rewarding partnership with The WB its launch. Television Network, which provides quality prime-time programming and a national brand to 19 of our 26 These and other initiatives build on a unique stations. Prime-time ratings on Tribune’s WB affiliates Tribune strength—scale on the national level and are significantly higher than the network’s national localism in our individual markets. The combination ratings. This is due largely to the popular off-network produces benefits on many levels. For example, the programming we offer before and after the nightly scope of our media resources enables our local WB line-up—shows like “Friends” and “Everybody businesses to offer readers and viewers broader and Loves Raymond,” as well as strong local news. deeper news coverage. During the war in Iraq, our Washington news bureau produced nearly 700 live In 2003, Tribune Broadcasting developed another shots from the Middle East for our television stations. valuable relationship, this time with Comcast The bureau also coordinated live television access Corporation. Tribune will be a partner in a new to newspaper reporters from the Los Angeles Times regional sports network, launching this September and Chicago Tribune who were on the scene. Team in Chicago. We will receive rights fees for the 72 efforts like these, routine throughout the company, Cubs games airing on the channel, plus equity in greatly enhance our local newscasts. the network. And as part of a multi-level agreement, Comcast will greatly extend the national reach of Scale is good for advertisers as well. With our multi- Superstation WGN on its cable systems throughout media depth in the country’s major markets, we can the country. Comcast also purchased our 8.6 percent offer customized solutions that deliver large local interest in The Golf Channel for $100 million. audiences quickly and efficiently. Tribune Media Net, our national advertising unit, produced $70 million QUALITY JOURNALISM While accelerating revenue in incremental revenue in 2003. Half of those dollars growth is our leading business objective, journalism REACHING HIGH-PERFORMANCE SITCOMS HISPANIC READERS Tribune’s Spanish-language newspapers, led by Hoy in New York and Popular syndicated shows like “Everybody Loves Raymond” attract large audiences Chicago, delivered revenues in 2003 of $26 million, up 34 percent.