Mid-Year Review: Hope in the Internet to combat discouraging revenue figures

Posted by Mica Swyers on June 20, 2007 at 1:51 PM

During the Mid-Year Media Reviews in New York City, companies such as Media General, Belo, and the Journal-Register Company focused on the increasing importance of Internet presence for newspapers in an effort to combat the discouraging revenue figures that have stockholders worried.

Marshall N. Morton, president and CEO of Media General, discussed the company’s efforts to increase its “total audience” and achieve a strong Internet presence, particularly in light of a 14.9% revenue drop in the past year. With plans for a focus on “display and rich media ads from local and national advertisers,” Media General predicts $40 million in online revenue this year, followed by $50 million next year.

Along a similar vein, Robert W. Decherd, chairman and CEO of Belo, explained that the company plans on “leveraging [its] newspaper franchises to build sustainable Internet businesses.” Still, Belo will continue to focus on “core newspaper operations, which remain the primary driver of cash flow.”

Reducing distribution is just one of the long-term, money-saving strategies that companies such as Belo are employing to combat the fact that newspapers, though still a major source of cash flow, are not bringing in the same amount of revenue that they once did.

The Journal-Register Company’s presentation predicted a decline in same-store advertising revenues; however, its online and circulation revenues should increase by 30% and 0.5%, respectively. Echoing the sentiments of her fellow presenters, Julie A. Beck, chief financial official for the Journal-Register Company, said that the company hopes for significant increases in Internet revenue to combat a disappointing outlook in advertising for the rest of 2007.

Source: Follow the Media