Healthy September ad sales have boosted the bottom lines of two big American newspaper groups.
Gannett – publisher of leading stateside daily USA Today – revealed that newspaper ad revenues last month jumped 5% year-on-year, helping to push its third-quarter income up 5% to $279 million (€240.0m; £167.5m).
Meanwhile, Dow Jones reported a 29.4% surge in September ad lineage at its flagship title the Wall Street Journal. The company's Q3 income (excluding exceptional items) jumped almost fourfold in Q3 to $9m.
News of the strong September ad sales raised hopes that the long-suffering publishing sector may be on the mend. However, executives at both firms urged caution.
"We're more optimistic than we were," declared Gannett chairman/ceo Douglas McCorkindale, "but it's simply too early to tell."
Gannett's classified ad revenues remain poor due to a downturn in recruitment listings, while growth in local advertising is slow. However, national ad income jumped 7% last month as the auto, telecoms and travel sectors hiked spend.
McCorkindale's caution was echoed by Dow Jones chairman/ceo Peter Kann, who commented: "We're not ready to call an end to this severe B2B ad recession."
Despite a rise in revenues at both the US and the international editions of the Journal, the company's print division still made an operating loss of $11.5m.
Data sourced from: Financial Times; additional content by WARC staff