America’s biggest newspaper company Gannett has reported a 16% drop in net income to $248.4 million for the fourth quarter on the back of sliding ad revenue.
The results give the media group full-year net income of $831.2m on revenue of $4.2 billion, compared with $1.72bn on $3.98bn in 2000.
Gannett’s newspaper division saw Q4 revenues drop 13% to $1.44bn, with a 14% slump in advertising income. At flagship title USA Today, ad pages were down 30% and revenues 29%. The group’s TV properties, meanwhile, suffered a 23% fall in turnover to $180.1m.
Chairman/ceo Douglas H McCorkindale blamed “the advertising recession and weak economy” for the results, adding that the “broadcast properties were impacted by the absence of strong political and Olympics-related advertising that buoyed 2000's strong results.”
Data sourced from: MediaWeek.com (USA); additional content by WARC staff