The Tribune Co.on Wednesday reported a 7 percent drop in third quarter earnings as the housing slump and lower consumer spending continued to hit the media company’s advertising revenue.

Tribune reported third quarter net income of $153 million ($1.22 per share) down from $164 million (65 cents) in the same period a year earlier. Earnings per share nearly doubled because the number of shares outstanding fell by half, the company said.

Revenue for the Chicago-based media company, which owns the Los Angeles Times and the Chicago Tribune, slipped 4 percent to $1.3 billion, beating Wall Street’s estimate of $1.25 billion, according to Thomson Financial. Advertising revenue fell 9 percent to $674 million.

Tribune owns the Chicago Tribune, the Los Angeles Times, the Baltimore Sun and eight other daily papers as well as 23 television stations. It also owns the Chicago Cubs baseball team, which will be sold as part of Zell’s deal.