AD DROUGHT CONTINUES IN APRIL; NO MAY FLOWERS Some
publishers point to Easter's 2005 date shifting to
March.
NewsInc • May 16, 2005 • newspaper advertising
While April showers may bring May flowers, the newspaper
advertising drought seemed to persist last month, with the first six
companies reporting generally parched results. Many of the companies
noted that the ad-rich Easter holiday fell in March this year, making
comparisons with last April seem worse than they actually were. By the
numbers:
* Dow Jones & Co. Inc.: Financial advertising at its flagship
Wall Street Journal continued to be a sore point in April, as volume in
the category dropped 27.3 percent when compared to April 2004.
Overall linage at the paper was off 4.6 percent, with the only
bright spot coming in "classified and other," which grew in
volume by 8.4 percent. Also down was the technology volume, which was
off 7.4 percent. Volume in the general category was flat.
At the European edition of the Journal, volume was off 8.8 percent,
though at the Asian edition, it was up 5.2 percent.
The company's community newspaper group, Ottaway Newspapers
Inc. of Campbell Hall, N.Y., said that total volume was flat, with a
3.2-percent increase in volume at its dailies, but an 8.2-percent
decrease at its non-dailies.
Barron's, the company's weekend financial tabloid, lost
14.4 percent in volume over last year.
* Gannett Co. Inc.: New newspapers and a favorable currency
exchange rate in Period Four, which ended May 1, helped make the
McLean, Va.-based multimedia company's monthly results look pretty
good.
Total ad revenue grew by 4.2 percent, to $470.7 million, when
comparing Period Four 2004 to the same time this year.
When the new papers are pared off of the income statement, revenue
for the period was up only 2.3 percent and if you take off the exchange
rate for pounds sterling, that number is whittled down to 1.8 percent.
Combined newspaper results had classified ad revenue up 8.4
percent, to $196.4 million, while local was up 2.2 percent, to $201.7
million, and national was off one percent, to $72.6 million.
Volume for all currently owned papers was down 1.7 percent, with
national off 8.4 percent, local off 3.2 percent and classified flat.
Pre-print distribution was up 4.6 percent, to 1.1 billion pieces.
* Journal Communications Inc.: Strong classified growth both at its
flagship Milwaukee Journal Sentinel and its community newspaper
division helped propel the company's Period Four newspaper ad
revenue up four percent, when compared to the same period last year.
For the four weeks ending April 25, total ad revenue hit almost $20
million, with classified growing 8.8 percent, to $6 million, the
ever-popular "other" category up 4.1 percent, to almost $2
million, retail up 1.9 percent, to $11 million and general flat at
$926,000.
The company said that its total revenue was up 1.7 percent for the
period, to $39 million, and said that broadcast revenue was flat at
$12.8 million, when a new TV station's revenue is rolled in.
Classified revenue at the Journal Sentinel grew 9.5 percent in the
period, to $5.3 million, while it grew 4.7 at the community group, to
$758,000.
Total linage was down 6.1 percent for the period, with general off
14.3 percent, retail off 9.4 percent and classified off 6.9 percent.
Pre-prints were up 20.2 percent, with 66.7 million pieces distributed.
* Knight Ridder: A modest gain in classified advertising revenue
helped offset flat retail revenue and a $1.5-million loss in national
advertising, the San Jose-based company said, when comparing the
four-week period ending May 1, 2005, to the same period last year.
Total ad revenue was up two percent, to $229.5 million,
year-over-year. Classified revenue was up 6.3 percent, to $90.1 million
and retail was flat at $104.9 million. National was off 4.3 percent,
down to $34.4 million.
Volume was off 2.2 percent, with classified flat, retail off four
percent and national off 8.4 percent. The number of pre-prints inserted
was flat as well, at 768.8 million.
Double-digital percent gains in linage at the company's papers
in Miami and Wichita, Kansas, were offset by double-digit losses at its
papers in Philadelphia and San Jose (supplemented by high single-digit
losses at papers in Fort Worth, Texas, and St. Paul, Minn.).
* The E.W. Scripps Co.: As the growth of its cable television
network begins to stabilize, the new fair-haired child at this
Cincinnati-based multimedia company is its "television retailing
subsidiary," Shop at Home, which showed a 41.5-percent revenue
growth, to $30.5 million, when comparing April 2004 to this April.
Of course, the Scripps Network division didn't do too badly
either, where overall revenue was up 22.9 percent, year-over-year, to
$78.7 million.
More modest gains were found in the company's newspaper
division, where total ad revenue was up 5.7 percent, to $48.6 million.
And outright losses were shown at its broadcast TV operation, whose
revenue was down 8.4 percent, to $26 million, and its licensing and
other media group, where revenue was off 16.8 percent, to $8.1 million.
Newspaper classified revenue was up 9.8 percent, to almost $20
million, for the month, while pre-prints and other ad income was up 3.8
percent, to $11.1 million, local was up 2.8 percent, to $14.3 million
and national was up 1.4 percent, to $3.3 million.
* Tribune Co.: With its publishing division producing flat revenue,
the Chicago multimedia giant wasn't able to sustain losses in its
other two main divisions, TV and radio/entertainment and lost an overall
2.2-percent in total revenue for the four weeks ending April 24, when
compared to the same period last year.
Publishing revenue was $317 million, while TV revenue was off 7.1
percent, to $99.7 million, and radio/entertainment was off 3.6 percent,
to $20.7 million.
National volume was down 11.4 percent, while classified volume was
down 4.3 percent and retail was down 1.9 percent. The total number of
pre-print pieces distributed was up eight percent, to 1.2 billion.
Full-run volume was off five percent at the company's
newspapers, with the biggest drop coming at its Los Angeles Times, which
was down 12 percent when compared to last year's period. The
Chicago Tribune was off 4.2 percent and 4.9 percent at all its other
dailies. The only bright spot was at its beleaguered Newsday, which
showed a volume gain of 3.4 percent.
Classified continues to be the driver in any ad revenue growth
that's being reported. Gannett said that employment was up 13.1
percent and real estate up 9.1 percent, with the spoiler being
automotive advertising, which was down 2.9 percent. And the shift in
the date of Easter obviously hurt overall revenue as well.
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