DALLAS: Belo Corp. announced further cost-cutting measures today after having already suspended dividends and renegotiating its credit terms. The pure-play TV company is suspending its employee 401k match, implementing a 5 percent salary reduction for those in its management compensation program, and laying off 150 people, all effective mid-April.
“As a result of these actions, and other measures previously implemented, we expect 2009 cash operating expenses to be approximately 10 percent lower than 2008, excluding severance costs,” Belo chief Dunia A. Shive said.
Belo (NYSE: BLC) last week suspended cash dividends after declaring one of 75 cents a share payable June 5 to stockholders of record as of May 15. All subsequent dividends are suspended indefinitely.
Belo also renegotiated its bank loan last week, reducing its obligation by $50 million, from $600 million to $550 million.
The 20 TV-station group started taking swift action after recently posting a 2008 net loss was $333 million compared to almost $263 million the year before. Belo wrote down $465 million for the year, including $114 million on its FCC spectrum licenses. – Deborah D. McAdams
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