Earnings plunged by 54 percent at the newspaper’s parent Dow Jones & Co., with its fledgling online operations earning more money for the first time than the flagship Journal and the weekly Barron’s.
Kann blamed the slump on weak advertising at the Journal, which lost 8 percent of its ads in the first quarter and expects the slump to continue.
The advertising problems at the financial publishing giant seeped into the market, as well, as the stock fell 4.6 percent yesterday, to $35.46, off $1.72. Shares are off 24 percent in the last 12 months.
First-quarter profit fell to $8.2 million, or 10 cents a diluted share, from $17.8 million, or 22 cents a share, a year earlier.
Quarterly revenue rose to $412.1 million, up 2.6 percent from a year earlier, despite an 8 percent decline in ad linage at the U.S. edition of the newspaper.