Newsquest advertising revenue drops 8%
Wednesday, February 2, 2011
Local newspaper publisher Newsquest has recorded a drop in advertising revenue of almost 8% in its fourth-quarter results for 2010.
According to US parent company Gannett's results, Newsquest was the worst affected of its businesses year-on-year.
Classified advertising was worst hit, dropping 10.2%, while retail advertising dropped 5.9% and national advertising 1.6%. Overall advertising for the East London-headquartered company was 7.9%.
In comparison, its US division, which includes USA Today, recorded an overall drop of 4.8%, although its national advertising plummeted 8%.
Newsquest's employment advertising was hit particularly hard, down 21.3%, while automotive and real estate both dipped, by 5.7% and 3.6% respectively.
Overall, Gannett's year-on-year turnover was stagnant at $1.4bn, although profit increased by 30% thanks to an aggressive cost-cutting regime.