2010-01-12 23:05:54 -
Zacks.com releases the latest Industry Outlook. Today, Zacks Equity Research discusses the Publishing Industry, including The McClatchy Company (NYSE: MNI : 
), The Washington Post Company (NYSE: WPO : ), Journal Communications, Inc. (NYSE: JRN : ), Gannett Co. Inc. (NYSE: GCI : ) and The E. W. Scripps Company (NYSE: SSP : ).
A synopsis of today’s Industry Outlook is presented below. The full article can be read at www.zacks.com/stock/news/29183/Publishing+Industry+Stock+Review+ .. : .
Publishing Industry Stock Review - Jan. 2010
The slide in newspaper circulation, which ran through the 1990s and into 2000, is accelerating. Earlier, the circulation of newspaper was falling by less than 1%, but the rate of decline
accelerated to 2% in 2005, 3% in 2007 and 4% in 2008 with more and more readers migrating to the Internet. Circulation has also fallen prey to budget cuts with newspaper companies reducing the number of print pages and newsroom staff to combat the downturn.
Despite the fall in newspaper circulation, some companies are reporting higher revenue from circulation due to increase in prices for subscriptions and single copies. At The McClatchy Company (NYSE: MNI :
), circulation revenue climbed 4% in the first nine months of 2009.
According to the data released by the Newspaper Association of America, newspaper-advertising revenue tumbled for the 13th straight quarter in the third quarter. Also, 2009 reflected the steepest fall in advertising sales since 1987. Total advertising revenue dropped 28% year-over-year to $6.4 billion in the third-quarter of 2009.
In the first nine months, advertising revenue also declined 28% to $19.9 billion. Print advertising revenue plunged 29% to $5.8 billion, with classified advertising revenue down 38% to $1.46 billion. Classified advertising revenue, however, actually improved after declining 40% and 42% in the second and first quarters, respectively.
Print advertising revenue tumbled 32% and 28% in third quarter 2009 at McClatchy and The Washington Post Company (NYSE: WPO :
), respectively. Publishing revenue at Journal Communications, Inc. (NYSE: JRN :
) and Gannett Co. Inc. (NYSE: GCI :
) dropped 22% and 28%, respectively. Newspaper advertising revenue, excluding online advertising at The E. W. Scripps Company (NYSE: SSP :
) fell 28%.
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Zacks.comMark Vickery312-265-9380Visit: www.zacks.com :
