Gannett Co., Inc. will take a write-down of up to US$5.2 billion on fourth quarter financial results due to the declining market value of its newspapers, MarketWatch reported Friday.

Profits in the fourth quarter 2008 were down 36 percent, to $158 million (69 cents per share) for the largest newspaper publisher in the United States, while revenue was down 8.5 percent to $1.74 billion. At the same time in 2007, net income was $245.3 million ($1.06 per share).

The charges, "while significant, will not impact operating cash flow, our ability to pay down debt or the way we will operate the company going forward," said Craig Dubow, chairman, president and CEO of Gannett, according to an Associated Press article posted by USA Today.

The after-tax charges will range from $4.5 billion to $5.2 billion, and the final price will be determined based on how much the value of assets have gone down, mostly due to the economic recessions in the United States and United Kingdom, where Gannett operates Newsquest titles. The market values of assets have declined in the past year due to ad revenue and stock price downturns, as the economy has suffered, according to MarketWatch.

At the company's flagship national title USA Today, ad revenue was down 18.5 percent, to 788 paid ad pages.

Advertising revenue dropped an average of 23 percent across Gannett's newspapers, as revenue was down 18 percent in the United States, and 29 percent (in British pounds) at its Newsquest titles in the United Kingdom, MarketWatch reported.