Newsquest advertising revenue falls in first quarter

Regional newspaper publisher Newsquest experienced a 12.4 per cent decline in advertising revenues year-on-year, in the first quarter of the year.

According to earnings published by US parent company Gannett today, its UK operation saw classified advertising revenues drop by almost 16 per cent, while retail and national advertising also decreased year-on-year, by 8.2 per cent and 5.1 per cent respectively.

This shows a continued decrease on Newsquest's results for the fourth quarter of 2010, when it reported a 7.8 per cent decrease year-on-year in advertising revenues.

Gannett today reported "softer ad demand" particularly in the UK, had impacted revenue results in the quarter, although claimed digital advertising revenue improved in "virtually all categories", with a company wide increase of 12 per cent making up around 20 per cent of total operating revenues.

"Our publishing segment results for the quarter reflect the current state of the domestic economy with strength in the auto and employment sector.

"However, softness persists in certain sectors, particularly the real estate market here and more broadly in the UK," Gannett's chairman and chief executive officer Craig Dubow said in today's report.

Earlier this year staff at Newsquest titles in a number of regions were reportedly asked to take a week’s unpaid leave in response to "poor trading conditions".

An internal Newsquest memo circulated in Wales, Gloucestershire, and the South Midlands said that revenues are "considerably below last year’s performance" and therefore action needed to be taken "to drive revenues and control costs sooner rather than later".

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