Newspaper group Hollinger International has reported £100 million in Q3 losses and is to lay off 250 staff, over one-third of its workforce.
The company – owner of the Daily Telegraph and Sunday Telegraph in the UK and the Chicago Sun-Times – blamed the loss on the fallout from September 11 and various exceptional item such as the divestiture of its 50% holding in Canada’s National Post.
Revenues in the UK tumbled from £87m in Q3 2000 to £77.3m. It said ad revenue had been hurt by “the softening and uncertain economic environment,” with income from financial advertising down 35%.
Hollinger hopes circulation revenues will be boosted by a rise in the cover price of the Daily Telegraph from 45p to 50p (75p to 85p on Saturdays).
News source: Media Week (UK)