Belo 8-K Belo Reports Results for Second Quarter 2007

Exhibit 99.1

FOR IMMEDIATE RELEASE
Friday, July 27, 2007
7:30 A.M. CDT

BELO REPORTS RESULTS FOR SECOND QUARTER 2007

DALLAS— Belo Corp. (NYSE: BLC) today reported net earnings per share of $0.35 for the second quarter of 2007 as compared to $0.41 for the second quarter of 2006. The second quarter of 2006 included a $7.5 million gain related to a payment associated with a change-in-control provision in one of Belo’s vendor contracts.

     Robert W. Decherd, Belo’s chairman and chief executive officer, said, “Belo’s second quarter results reflect continued outstanding performance by the Company’s premier collection of television assets, strong growth in our online businesses and excellent expense management across the Company. Belo’s Newspaper Group results were affected by a soft newspaper advertising environment but improved versus the first quarter, with lesser decreases in revenue and EBITDA. We also made definitive progress in the second quarter on various components of the Yahoo!/Newspaper Consortium agreement.”

Second Quarter in Review

Consolidated

     Consolidated revenue totaled $391 million in the second quarter of 2007, a decrease of 3.2 percent versus the second quarter of 2006, with Television Group revenue up 2.5 percent and Newspaper Group revenue down 8.5 percent. The Company’s total operating costs and expenses decreased 2.8 percent, benefiting from headcount reductions in 2006, lower pension expense related to the Company’s decision to freeze its pension plan effective March 31, 2007, significantly lower newsprint expense from decreases in both consumption and price, and lower distribution expense related primarily to the decision to reduce the circulation perimeter ofThe Dallas Morning News. Consolidated EBITDA decreased eight percent. The previously noted $7.5 million gain in the second quarter of 2006 accounts for almost seven percentage points of the decline in consolidated EBITDA.

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Television Group

     Television Group revenue increased 2.5 percent in the second quarter, with political revenue of $2.2 million in the second quarter of 2007 versus $5.1 million in the second quarter of 2006. Total spot revenue, including political, increased 1.1 percent with a 3.9 percent increase in local spot revenue and an increase of approximately one percent in national spot revenue. Advertising revenue associated with Belo’s television station Web sites continued to grow at a high rate, increasing 48 percent versus the second quarter of 2006 to $7 million.

     Television Group segment costs and expenses increased 5.6 percent in the second quarter versus the same period last year. As in the first quarter of 2007, outside services expense was higher as the Television Group absorbed its portion of Belo’s technology outsourcing costs. Television Group segment EBITDA was down 1.5 percent versus the prior year.

Newspaper Group

     Newspaper Group total revenue decreased 8.5 percent in the second quarter of 2007, reflecting soft newspaper advertising conditions and the downturn in the Southern California housing market. Decreases were noted in retail, general and classified revenues while part-run advertising revenue increased slightly. Newspaper Group online advertising revenues increased 19 percent to $13.6 million.

     Newspaper Group segment costs and expenses decreased 9.2 percent versus the second quarter of 2006, due in part to the 2006 headcount reductions atThe Dallas Morning NewsandThe Press-Enterprise, and lower newsprint and distribution expenses. Newsprint expense decreased 23 percent with a $37 per ton favorable price variance and a 19 percent decrease in consumption. Newspaper Group segment EBITDA decreased six percent versus the prior year.

Corporate

     Corporate costs and expenses were $24.9 million in the second quarter of 2007 as compared to $25.5 million in the second quarter of 2006.

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Other Items

     Other income (expense), net was $3.2 million in the second quarter of 2007 versus $8.9 million in the second quarter of 2006, which included the $7.5 million gain associated with the change-in-control provision in one of Belo’s vendor contracts. Belo’s total depreciation and amortization expense increased 2.4 percent in the second quarter of 2007.

     Income taxes expense includes gains related to Texas state tax reforms in the second quarter of 2007 and 2006 of $2.9 million and $3.8 million, respectively.

     Total debt at June 30, 2007, was $1.248 billion. The Company repurchased 629,000 shares in the second quarter of 2007 for a total of $13.5 million and invested $14.4 million in capital expenditures. Interest expense decreased slightly in the second quarter. Belo’s leverage ratio, as defined in the Company’s credit facility, was 3.1 times at June 30, 2007.

Non-GAAP Financial Measures

     A reconciliation of Consolidated EBITDA to net earnings is set forth in an exhibit to this release.

Other Matters

     Implementation of the various components of the agreement between Yahoo! and the Newspaper Consortium, of which Belo is a part, is on schedule. Decherd noted, “On June 27, we completed the integration of Yahoo!’s HotJobs technology to power our online employment sites in Dallas and Riverside, which will allow us to deliver even more robust solutions to employers and job seekers. Next week, we expect to launch Yahoo!’s contextual advertising and Web search capability on dallasnews.com. The contextual ad component will allow the placement of text-based ads next to relevant information on dallasnews.com. Web search will allow users to search the entire Internet via Yahoo!’s search engines from dallasnews.com. Target launch dates for all other components have now been set.”

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     Decherd added, “While we expect to see some incremental revenue related to search and content integration this year, the most significant revenue opportunity is related to the ad-serving technology and cross-selling opportunities that we expect to drive online revenues beginning in the second half of 2008. Yahoo! and the Newspaper Consortium have already made considerable progress in establishing the technology standards needed to develop the ad technology platform, and that work is ongoing.”

Third Quarter Outlook

     Regarding Belo’s outlook for the third quarter of 2007, Dennis A. Williamson, executive vice president/Chief Financial Officer, said, “We expect the Company’s third quarter performance to be much like that of the second quarter, with Television Group revenues slightly higher than the third quarter of 2006 and newspaper revenues down versus the prior year. We again expect expenses to be less than the prior year.”

About Belo

     Belo Corp. is one of the nation’s largest media companies with a diversified group of market-leading television, newspaper, cable and interactive media assets. AFortune1000 company with 7,100 employees and $1.6 billion in annual revenues, Belo operates in some of America’s most dynamic markets in Texas, the Northwest, the Southwest, the Mid-Atlantic and Rhode Island. Belo owns 20 television stations, six of which are in the 15 largest U.S. broadcast markets. The Company also owns or operates six cable news channels and manages one television station through a local marketing agreement. Belo’s daily newspapers areThe Dallas Morning News,The Providence Journal,The Press-Enterprise(Riverside, CA) and theDenton Record-Chronicle(Denton, TX). The Company also publishes specialty publications targeting young adults, and the fast-growing Hispanic market, includingQuickandAl Díain Dallas/Fort Worth, andEl DandLa Prensain Riverside. Belo operates more than 30 Web sites associated

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with its operating companies. Additional information is available atwww.belo.com or by contacting Carey Hendrickson, vice president/Investor Relations & Corporate Communications, at 214-977-6626.

     Statements in this communication concerning Belo’s business outlook or future economic performance, anticipated profitability, revenue, expenses, dividends, capital expenditures, investments, future financings, or other financial and non-financial items that are not historical facts, are “forward-looking statements” as the term is defined under applicable federal securities laws. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those statements.

     Such risks, uncertainties and factors include, but are not limited to, changes in capital market conditions and prospects, and other factors such as changes in advertising demand, interest rates and newsprint prices; newspaper circulation matters, including changes in readership patterns and demography, and audits and related actions by the Audit Bureau of Circulations; technological changes, including the transition to digital television and the development of new systems to distribute television and other audio-visual content; development of Internet commerce; industry cycles; changes in pricing or other actions by competitors and suppliers; Federal Communications Commission and other regulatory changes; adoption of new accounting standards or changes in existing accounting standards by the Financial Accounting Standards Board or other accounting standard-setting bodies or authorities; the effects of Company acquisitions and dispositions; the recovery of the New Orleans market (where the Company owns and operates market-leading television station WWL-TV, the CBS affiliate) from the effects of Hurricane Katrina; general economic conditions; and significant armed conflict, as well as other risks detailed in Belo’s other public disclosures, and filings with the Securities and Exchange Commission (“SEC”) including the Annual Report onForm 10-K.

Belo Corp.
Consolidated Statements of Earnings

	Three months ended						Six months ended
		June 30,					June 30,
In thousands, except per share amounts (unaudited)	2007			2006			2007			2006
Net Operating Revenues	$	390,505		$	403,557		$	744,560		$	775,280
Operating Costs and Expenses
Salaries, wages and employee benefits		138,538			142,472			278,915			290,838
Other production, distribution and operating costs		125,752			123,596			243,099			235,426
Newsprint, ink and other supplies		26,332			34,227			53,179			70,905
Depreciation		23,325			22,272			46,091			44,088
Amortization		1,625			2,087			3,691			4,174
Total operating costs and expenses		315,572			324,654			624,975			645,431
Earnings from operations		74,933			78,903			119,585			129,849
Other income and expense
Interest expense		(24,248	)		(24,430	)		(48,399	)		(48,092	)
Other income, net(1)		3,245			8,852			8,613			9,700
Total other income and expense		(21,003	)		(15,578	)		(39,786	)		(38,392	)
Earnings
Earnings before income taxes		53,930			63,325			79,799			91,457
Income taxes		17,508			20,666			27,926			31,498
Net earnings	$	36,422		$	42,659		$	51,873		$	59,959
Net earnings per share
Basic	$	.36		$	.41		$	.51		$	.57
Diluted	$	.35		$	.41		$	.50		$	.57
Average shares outstanding
Basic		102,222			104,307			102,246			105,219
Diluted		103,178			104,474			103,035			105,523
Cash dividends declared per share	$	—		$	—		$	0.125		$	0.10

Note 1: Other income (expense), net consists primarily of equity earnings (losses) from partnerships and joint ventures and other miscellaneous income (expense).

Belo Corp.
Consolidated Condensed Balance Sheets

	June 30,		December 31,
In thousands	2007		2006
	(unaudited)
Assets
Current assets
Cash and temporary cash investments	$	26,544	$	46,291
Accounts receivable, net		257,011		276,825
Other current assets		56,972		61,047
Total current assets		340,527		384,163
Property, plant and equipment, net		547,572		560,494
Intangible assets, net		2,575,091		2,574,218
Other assets		94,274		95,403
Total assets	$	3,557,464	$	3,614,278
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable	$	47,330	$	79,605
Accrued expenses		92,212		102,004
Other current liabilities		59,695		77,303
Total current liabilities		199,237		258,912
Long-term debt		1,247,982		1,283,434
Deferred income taxes		432,466		435,154
Other liabilities		110,292		109,630
Total shareholders’ equity		1,567,487		1,527,148
Total liabilities and shareholders’ equity	$	3,557,464	$	3,614,278

Belo Corp.
Segment Information

	Three months ended				Six months ended
		June 30,			June 30,
In thousands (unaudited)	2007		2006		2007		2006
Television Group
Net operating revenues	$	198,229	$	193,326	$	376,571	$	368,018
Segment costs and expenses		115,954		109,815		227,821		217,860
Segment EBITDA	$	82,275	$	83,511	$	148,750	$	150,158
Newspaper Group
Net operating revenues	$	192,276	$	210,231	$	367,989	$	407,262
Segment costs and expenses		149,734		164,992		300,781		334,447
Segment EBITDA	$	42,542	$	45,239	$	67,208	$	72,815
Corporate
Costs and expenses	$	24,934	$	25,488	$	46,591	$	44,862

Note 1: Belo’s management uses segment EBITDA as the primary measure of profitability to evaluate operating performance and to allocate capital resources and bonuses to eligible operating company employees. Segment EBITDA represents a segment’s earnings before interest expense, income taxes, depreciation and amortization. Other income (expense), net is not allocated to the Company’s operating segments because it consists primarily of equity earnings (losses) from investments in partnerships and joint ventures and other non-operating income (expense).

Belo Corp.
Consolidated EBITDA

	Three months ended						Six months ended
		June 30,					June 30,
In thousands (unaudited)	2007			2006			2007			2006
Consolidated EBITDA(1)	$	103,128		$	112,114		$	177,980		$	187,811
Depreciation and Amortization		(24,950	)		(24,359	)		(49,782	)		(48,262	)
Interest Expense		(24,248	)		(24,430	)		(48,399	)		(48,092	)
Income Taxes		(17,508	)		(20,666	)		(27,926	)		(31,498	)
Net Earnings	$	36,422		$	42,659		$	51,873		$	59,959

Note 1: The Company defines Consolidated EBITDA as net earnings before interest expense, income taxes, depreciation and amortization. Consolidated EBITDA is not a measure of financial performance under accounting principles generally accepted in the United States. Management uses Consolidated EBITDA in internal analyses as a supplemental measure of the financial performance of the Company to assist it with determining performance comparisons against its peer group of companies, as well as capital spending and other investing decisions. Consolidated EBITDA is also a common alternative measure of performance used by investors, financial analysts, and rating agencies to evaluate financial performance. Consolidated EBITDA should not be considered in isolation or as a substitute for net earnings, operating income, cash flows provided by operating activities or other income or cash flow data prepared in accordance with U.S. GAAP and this non-GAAP measure may not be comparable to similarly titled measures of other companies.