Wall Street reacted with enthusiasm to news that US national newspaper advertising grew by more than 18% in the first quarter.

Noted one analyst: "We believe newspaper valuations are appealing in the context of better-than-expected ad revenue growth and strong near-term earnings momentum." But another cautioned that rising newsprint prices and a generally slowing economy could put a brake on earnings later in the year: "It's a great second quarter, but there will be more focus on the second half," he warned.

The figures, released last week by the Newspaper Association of America, showed overall advertising revenues for the first three months of 2000 reaching $10.8 billion, an increase of 5.7% year-on-year. National newspaper ad revenues soared by 18.7% percent, hitting $1.8 billion, the largest quarterly percentage gain in seventeen years.

News Source: CampaignLive (UK)