USA: "there is no circulation scandal" says Gannett CEO

Posted by Bertrand Pecquerie on June 23, 2004 at 9:43 AM

Several of the largest U.S. newspaper groups said they saw a gradual recovery in the advertising market for the rest of the year, and said the circulation scandals at rival publishers would have little impact on the overall market... Left unaddressed for investors attending the Mid-Year Media Review conference in New York were the recent revelations of circulation pumping at Tribune Co.'s Newsday and Spanish-language Hoy, and Hollinger International's Chicago Sun-Times. Chief executives at both companies defended their auditing practices. "We have a rigorous internal auditing practice," Tony Ridder, CEO of Knight Ridder told Reuters. But he added, "We're going to talk about if there's any more we can do." Douglas McCorkindale, Chairman and CEO of Gannett said the problems that have plagued his rivals are not pervasive. "The newspaper industry operates in an straightforward and ethical manner," he said. The media is "blowing it out of proportion ... there is no circulation scandal."

Source: Reuters and former EW posting

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