WAN-IFRA

Shaping the Future of the Newspaper

Date

Fri - 25.05.2012


Media General sales down as economic downturn hits publishing sector

Media General sales down as economic downturn hits publishing sector

Media General Inc. Thursday announced its October revenues dropped 5.8 percent because the continuous publishing ad sales downturn offset the increasing revenues of interactive and political advertising, the Associated Press reported Thursday.

This group, which has newspaper and television operations, reported revenue for the period ended Nov. 2 declined from US$91.2 million to $85.9 million.

Classified ad sales plummeted 37.9 percent, which played a large part in publishing revenue dropping 16.9 percent, according to the AP report, posted by Forbes.com. Classifieds experience the most serious recession, due to downturns in real estate and auto, as well as rising unemployment rates.

However, the company's circulation revenue increased 4.6 percent to to price increases on daily single-copy and home-delivery, the AP reported.

The publishing sector has continued to suffer as more readers and advertisers migrate to the Web. The softening economics also aggravate the industry's troubles. Companies have tried reducing costs and ramping up Internet operations to deal with the shift.

Political ad sales did very well in October, due to presidential campaign spending, especially in Florida, North Carolina, Ohio and Virginia, Marshall Morton, Media General's president and chief executive, said in a statement, the AP reported. The broadcast group marked an 8.4 percent increase in revenue, as political ad sales were up $21 million, according to the AP.

Interactive media unit revenue rose 6.8 percent, boosted by the acquisition of DealTaker.com in March and increasing local online advertising.

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Author

Erina Lin

Date

2008-11-20 23:52

Shaping the Future of the Newspaper


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