View all newsletters
Sign up for our free email newsletters

Fighting for quality news media in the digital age.

  1. Media Business
October 20, 2009

Profit down 53% at Newsquest parent company

By Oliver Luft

Gannett – parent company of UK regional publisher Newsquest and the biggest newspaper publisher in the US – recorded a fall in profits of more than 50 per cent during the third quarter of the year.

The group said last night profits had been hit by a massive drop in advertising revenue between July and the end of September – its British publishing wing also suffered large falls in its ad-generated income.

Newsquest, which owns more than 200 newspapers including the Glasgow Herald and Brighton Argus, recorded a fall in overall advertising revenue of 28.7 per cent year on year during the period.

Retail advertising fell by 19 per cent at Newsquest while national advertising fell by 10.4 per cent.

Classified advertising across its regional newspapers was worst hit, falling by 34.7 per cent during the period as property, motoring and jobs advertising suffered large declines.

Revenue from property advertising dropped 30.6 per cent year-on-year. Motoring was down 37.4 per cent and employment down by 48.8 per cent at Newsquest.

Gannett made pre-tax profits of $73.8m (£45m), down 53 per cent on last year’s third-quarter figure of $158.1m.

Content from our partners
MHP Group's 30 To Watch awards for young journalists open for entries
How PA Media is helping newspapers make the digital transition
Publishing on the open web is broken, how generative AI could help fix it

Despite the downturn Craig Dubow, Gannett chairman and chief executive, said results were better than forecast and the company had begun to move in the right direction.

He said: “Although recession in the US and UK continued to temper ad demand and revenue growth during the quarter we are encouraged by the revenue trends.

“Third quarter year-over-year comparisons of publishing advertising revenue were a few percentage points than year-over-year comparisons for the second quarter and September was our best comparison month of the year.”

Overall, ad revenue declined 28 per cent across Gannett year on year, after falls of 34 per cent and 32 per cent respectively in the first two quarters of the year.

Email pged@pressgazette.co.uk to point out mistakes, provide story tips or send in a letter for publication on our "Letters Page" blog

Select and enter your email address Weekly insight into the big strategic issues affecting the future of the news industry. Essential reading for media leaders every Thursday. Your morning brew of news about the world of news from Press Gazette and elsewhere in the media. Sent at around 10am UK time. Our weekly does of strategic insight about the future of news media aimed at US readers. A fortnightly update from the front-line of news and advertising. Aimed at marketers and those involved in the advertising industry.
  • Business owner/co-owner
  • CEO
  • COO
  • CFO
  • CTO
  • Chairperson
  • Non-Exec Director
  • Other C-Suite
  • Managing Director
  • President/Partner
  • Senior Executive/SVP or Corporate VP or equivalent
  • Director or equivalent
  • Group or Senior Manager
  • Head of Department/Function
  • Manager
  • Non-manager
  • Retired
  • Other
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
Thank you

Thanks for subscribing.

Websites in our network