AP posts profit in 2013 even as revenue falls

Published on NewsOK Modified: April 30, 2014 at 3:27 pm •  Published: April 30, 2014

NEW YORK (AP) — The Associated Press said Wednesday that it posted a net profit of $3.3 million in 2013, as it cut costs across the organization. The results compare with a loss of $25.5 million a year ago, according to the news cooperative's annual financial report, released Wednesday.

Revenue fell 4 percent to $596 million as income from newspaper clients continued to fall and Google stopped licensing news content.

The revenue decline was offset by a sharper drop in operating expenses, which fell nearly 7 percent, to $604 million.

The AP earned nearly $11 million from equity stakes in joint ventures such as its entertainment photo service, Invision.

The AP eliminated its long-term debt and said it expects a small amount of revenue growth this year, which would mark the first gain since 2008.

CEO Gary Pruitt said the news organization is in a "strong and improving" position, and he called 2013 "a good year of progress for the AP."

The decline in newspaper revenue was partially offset by gains in video and photo sales, as well as in the sale of infrastructure support to other news organizations. The support comes in the form of equipment and camera crews, which it supplies through its Global Media Services product.

The AP's forecast 2014 revenue gain is expected to come from increasing sales of video, photos and its video newsroom software, Essential News Production System, said chief financial officer Ken Dale.

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