Unveiling its Q4 2008 results, Gannett said that it would take a cash charge of up to $5.2bn, after taxes, related to a reduction in the value of its assets, as a result of what it termed "the worldwide financial meltdown".
Gannett said revenues at its UK operation Newsquest fell by 29.3% year on year. Also in the UK, its classified revenues were 35.3% lower year on year, in pounds, reflecting declines of 57.7% in property, 35.2% in recruitment and 31.2% in motors.
Craig Dubow, chairman, president and chief executive of Gannett, said the multi-billion dollar write-down in the value of its assets stemmed from recessions in the US and UK. He insisted, however, that these impairment charges, while significant, would not impact "the way we will operate the company going forward".
He said: "Our results for the quarter reflect the unprecedented turmoil in the economies of both the US and UK and in the financial markets."
Dubow added: "The ongoing weakness in advertising demand had a significant impact on our results in both publishing and broadcasting this quarter. However, we benefited from substantially higher politically related advertising revenue in broadcasting, as well as solid results in the digital segment."
Newsquest operates 300 newspaper titles in the UK including The Argus in Brighton and Scotland's Sunday Herald.
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