Gannett Gets Stung by Loss of Ad Revenue
By KEVIN KINGSBURY
June 19, 2008; Page B9
Shares of Gannett Co. fell to levels last seen in 1994 as the newspaper publisher disclosed increased declines in print-advertising revenue for May, further highlighting the pressures facing the industry.
Gannett shares fell 4.5% to $24.42 in 4 p.m. New York Stock Exchange composite
trading.
Gannett, which publishes more than 80 U.S. newspapers, including USA Today, said publishing ad revenue fell 14.3% in May. Earlier this week smaller rival McClatchy Co. reported a 15% drop in newspaper-ad revenue for the first five months of the year and announced a 10% cut of its work force. Gannett's first-quarter ad revenue in the print segment dropped 10%.
Ad revenue at Gannett's television operations fell 6.2% last month. The TV division is expected to improve as the year progresses thanks to the presidential election.
Last week, Gannett said it would take a second-quarter write-down of between $2.5 billion and $3 billion, largely because of economic conditions in Britain, where a real-estate downturn is hurting ad revenue at its Newsquest newspaper operation.
DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
4 comments:
Maybe they should make it more affordable. I don't know what an advertisement costs but I placed a help wanted had for 10 days and the bill was $1300.00.
You bet I would. At least I know it would show up every day and people would see it. The readership is certainly higher. Where do I sign up ?
I look to see Gannat go under completely in a year or two. If the Disgrace's reporting is an example of the Gannat news philosphy, they are going under for sure!
A. Goetz
Yes, I would advertise on your site. When you had advertising on your website in the past I spoke with the businesses and they confirmed business had increased.
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