Gannet Co. and New York Times Co.: Ad revenues fall, Internet sales grow

Posted by Alisa Zykova on June 19, 2008 at 9:50 AM

Gannett Co. and New York Times (NYT) Co. both announced this week that their total revenues have dropped in May 2007, by about 10 percent and 6.6 percent respectively. Yahoo reports that ad revenues decreased in both cases and could not be compensated.

Gannett, operating some 85 US newspapers and 23 TV stations, said its advertising revenues fell by 14 percent from $404.9 million to $347.1 million since last year. Classified ad revenue dropped by 10 percent, retail ad revenue by 19 percent and real estate ad revenue by 31 percent.

Over the same period, the same trend occurs with the NYT and ad revenues cannot be counteracted by an increase in circulation revenue. Meanwhile, Internet revenue grew by 9 percent and Internet ad revenue augmented by 14 percent.

While Internet may be providing a new portal for ad revenues for newspaper and media, a PricewaterhouseCoopers report said that the "oft-reported death of traditional media remains greatly exaggerated."

Source: Yahoo