Newsquest ad revenue slumps almost 40%

LONDON - Newsquest's total ad revenue tumbled by 36.9% year on year in Q2, following a 38.7% fall the previous quarter, with recruitment and property ad revenues halving year on year in Q1.

The Argus: Newsquest's Brighton title has been hit be falling ad revenue
The Argus: Newsquest's Brighton title has been hit be falling ad revenue

Without revealing the actual ad revenue earned at Newsquest, US parent Gannett said its motor ad spend fell 43.5% year on year in Q1, 55.6% in recruitment, 52.7% in property and 21.8% in all other categories combined.

Meanwhile, retail ad spend fell by 20.1% year on year and 45.2% in classified.

Gannett did not detail Newsquest's profitability, but said its total publishing segment operating revenues - across Newsquest and its stable of US titles such as USA Today - were $1.1bn for the quarter, a 25.8% decline from the same quarter a year ago.

Gracia Martore, Gannett executive vice-president and chief financial officer, said: "We continue to position the company for the eventual rebound in the economy and the evolving media landscape as we navigate through this unprecedented economic storm.

"In our publishing segment, while advertising revenue comparisons remain difficult, second-quarter year-over-year comparisons improved versus the first quarter and June was our best comparison month this year."

Newsquest operates 300 newspaper titles in the UK, including The Argus in Brighton and Scotland's Sunday Herald.

In January, Gannett said it was taking a $5.2bn hit as it looked to write down the value of its assets, including its UK operation.

Unveiling the Q4 2008 results, Gannett said 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" downturn.

 

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