11 July 2000

The New York Times and regional newspaper publishing giant Gannet both attributed a rise in second quarter earnings to buoyant ad sales.

Reporting a surge in advertising revenues, NYT president and chief financial officer Russell Lewis forecast that "2000 will be yet another record year for the company". Advertising income had bolstered total revenues, which rose 13.7% to $798.2m from $701.9m in the same period last year. The New York Times Company also publishes The Boston Globe and twenty-two other newspapers.

Virginia-based Gannett, publisher of the nationally circulated USA Today and 74 regional dailies, also credited strong advertising demand for increased earnings of $265.8m, or $1 a share – up from $234.8m, or 84 cents a share in the same period last year. Total advertising revenues rose 21% to $1.83bn, compared to $1.5bn, while earnings were also boosted by revenues from UK newspaper groups Newsquest and News Communications & Media, respectively acquired in July 1999 and June 2000.

Gannett has been in buying overdrive recently, last month ingesting Central Newspapers, publisher of the Arizona Republic, the Indianapolis Star and four other US newspapers, for $2.6bn. It also announced a $1.1bn deal with Thomson Newspapers for 21 daily papers.

News source: Financial Times