This summary is based on the first quarter fiscal 2007 earnings call conducted by Media General, Inc. (MEG: chart) on April 19, 2007.

Key Investors Issues

- Net loss was $6.5 million or 27 cents per share
- Revenue was $234 million including news stations, up 5.9% from last year.
- Loss from interest in SP Newsprint is expected at $5 million for the full year 2007.

Fiscal Year 2006 Highlights

All of the company’s markets and advertising categories have been affected by slowing economic growth in the United States. Tampa is the company’s largest market and has been hugely affected by the downturn.

On the FCC front, the commission has been holding hearings on media ownership around the country. The company is looking forward to participating at the hearing at Tampa.

- Non-traditional products accounted for 10% of the company’s revenues.
- Same stations Olympic revenues were $4 million.

First Quarter Highlights

Net loss was $6.5 million or 27 cents per share, versus net income of $6.7 million or 28 cents per share in first quarter 2006. This includes a $1 million pre tax charge for severance cost related to staff reductions of Tampa Tribune and operating results of the four NBC stations acquired in third quarter 2006.

Revenue was $234 million including news stations, up 5.9% from last year. Excluding the new stations, revenue declined 3.2%.

Operating profits for all three divisions were hampered by the revenue weakness and higher interest expense.

In the publishing division, good expense management and increase in retail advertising revenues were offset by a steep decline in classified revenues and lower national advertising.

In the broadcast division, softness and transactional sales have continued into 2007 and automotive advertisers have further reduced spending. The company also did not have the benefit of the Winter Olympics advertising it enjoyed last year on its NBC stations.

Interactive Media Division revenues increased 30%.

The equity loss and unconsolidated affiliates of $2.3 million included $1.6 million from the company’s share of SP Newsprint and $733,000 from its share of a limited partnership that invests in media related emerging companies. In addition, the consolidation of some community paper printing operations in February eliminated 16 positions.

The new NBC stations experienced a weak first quarter.

- The four station group posted a $1.3 million loss. The Birmingham stations performed close to the company’s expectations, and Columbus Ohio and Providence, Rhode Island stations were well below expectations.
- As of February, the Raleigh and Birmingham stations ranked number 4 in their respective markets.

In the Publishing division, quarterly operating profits of $18.9 million were 31% lower than a year ago, a 5.7% decline in total revenues.

Operating expenses including severance costs for the Tampa restructuring were even with last year.