Posted on 02/28/2008 10:16:16 AM PST by abb
Gannett Co., the nation's largest newspaper publisher, said Thursday that January operating revenue dropped 7.5 percent on sharp declines in real estate and employment ad sales.
The publisher of USA Today said pro forma operating revenue slipped to $575.4 million from $622 million.
Pro forma assumes all properties were owned in both the latest and year-ago periods.
Total newspaper advertising sales fell 9.2 percent to $371.4 million. Classified ad sales slid 16.1 percent, with real estate down 25.3 percent and employment revenue off 19.1 percent. National ad revenue climbed 5.9 percent to $62.5 million.
Broadcasting revenue slipped 6 percent to $57.2 million. Television revenue slid 5.9 percent for the month on declines in local and national revenue. The company said increased political advertising was offset by weaker economic conditions and the absence of Super Bowl-related ad demand for CBS affiliates. The Super Bowl aired on Fox this year.
Gannett publishes 85 daily newspapers and owns almost 900 other publications. The company also runs 23 television stations.
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‘Milwaukee Journal Sentinel’ Parent Revenue Down 3.1% In January
By E&P Staff
Published: February 28, 2008 11:40 AM ET
CHICAGO Journal Communications reported Thursday that its January revenue slipped 3.1% to $31.92 million compared to the year-ago period, largely on weakness in classified advertising at its flagship Milwaukee Journal Sentinel.
January ad revenue for the newspaper and broadcast company declined 3.6%.
Total revenue for the Journal Sentinel fell 6.4% to $10.72 million.
Classified revenue fell 18.5%, on big drops in real estate — down 29.4% — and help wanted, which tumbled 23.2%. Automotive was down 6.6%.
Retail advertising was a lone print bright spot, increasing 2.3%.
National ad revenue, at about $860,000, was down 16.9%, and direct marketing, accounting for about $250,000 in revenue, plunged 23.3%.
Total interactive ad revenue, which is counted in the various categories, was up 17% to $1.08 million.
Total ad revenue for Journal Communications’ community newspapers and shoppers fell 6.9%, largely on declines in classified, down 19.9%, and retail, which slipped 3.7%.
Circulation revenue at the community newspapers and shoppers dropped by 52.8% to $77,000 as the company shifted its Milwaukee-area community papers to free distribution.
At Journal Communications’ broadcasting segment, total revenue for radio and television stations decreased 0.8% to $13.90 million.
E&P Staff (letters@editorandpublisher.com)
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Very good news indeed, but I will not be happy until the whole lot of them collapses.
This is really a pathetic performance. Looks like everyone’s cutting back on ad revenue in this environment, papers radio and tv.
Retail advertising is a leading indicator of what the economy will be doing in just a few short months.
When a downturn occurs retailers cut down on retail advertising. The primary reason for reducing advertising is it is not working very well.
As the economy worsens, retailers buy advertising in small amounts and it still does not work very well. But as time goes by and the economy starts to improve, the advertising starts to work again. As a result merchants increase their advertising because once again it is moving merchandise.
The increased consumer spending recovers the economy.
If you want to know what the economy is going to be doing watch the retail advertising sales. It will tell you more than any other indicator about what the economy is going to be doing in the coming months.
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