Primedia Posts 4Q Profit, Boosted By Tax Gain

ATLANTA (AP) — Consumer guide publisher Primedia Inc. posted a fourth-quarter profit Thursday, reversing a year-ago loss, boosted by an income tax benefit and lower costs.

The company earned $32 million, or 72 cents per share, up from a loss of $12.6 million, or 29 cents per share, in the same period a year earlier.

Revenue fell 7 percent to $73.4 million from $79.1 million.

The latest quarter's results included an income tax benefit of $29.4 million, compared with the year-ago quarter's income tax provision of $3.1 million.

The company said it plans to grow its customer base and market share in its largest business, Apartment Guide and ApartmentGuide.com, which are for rentals. As a result of "unprecedented collapse in demand and access to credit markets" in the residential real estate industry, however, Primedia said it expects to see increasing pressures on its New Homes and DistribuTech businesses during 2009.

For the full year, the company earned $59.5 million, or $1.35 per share, down from a profit of $491.4 million, or $11.14 per share, a year earlier. Excluding discontinued operations, the loss from continuing operations in 2007 was $55.7 million, or $1.26 per share.

Revenue slipped to $304.1 million from $314.8 million.

Shares rose 6 cents, or 3.6 percent, to $1.73 in late morning trading. In the past 52 weeks, the stock has traded between 69 cents and $7.54.