Belo falls to loss on charges, declining ad sales

DALLAS (AP) - TV station owner Belo Corp. fell to a third-quarter loss, hurt by the weak advertising market and a one-time accounting charge.

The company said Tuesday it took a $155 million after-tax charge because of the falling value of its broadcast licenses.

The continuing ad slump cut revenue by nearly 18 percent. Auto advertising, a crucial segment for local broadcasters, fell 36 percent from the year before. At the same time, there was little advertising related to political campaigns or the Olympics, categories that contributed roughly $19 million in the third quarter of 2008.

Belo's net loss came to $150.5 million, or $1.47 per share, compared with a profit of $14.4 million, or 14 cents per share, a year ago. Excluding unusual items, Belo said it would have earned 5 cents per share.

Revenue fell to $140.6 million from $170.8 million.

Separately, Belo said Tuesday it will offer between $250 million and $275 million in senior unsecured bonds that mature in 2016. It will use the proceeds to help pay off a portion of the company's $550 million credit line.

Belo shares fell 42 cents, or 9 percent, to $4.24 in afternoon trading.