US heavyweights suffer ad fall
America's three biggest titles blame war in Iraq. The publishers of the three biggest newspapers in America - USA Today, the New York Times and the Wall Street Journal - yesterday said the war in Iraq had caused the advertising recovery to stumble at their top titles.
The publishers of the three biggest newspapers in America - USA Today, the New York Times and the Wall Street Journal - yesterday said the war in Iraq had caused the advertising recovery to stumble at their top titles.
Gannett, which publishes USA Today, was buoyed by the performance of its British business, regional newspaper group Newsquest, which was behind a 7% improvement in profits to $324m (£203m).
However, it said revenues at USA Today were marginally down due to the dearth of travel-related advertising during the Iraq conflict. Advertising revenues at the title failed to pick up after the war and were 1% lower in June.
At the New York Times Company, profits in the quarter fell from $78.8m a year ago to $72.8m. Chief executive Russell Lewis said the figures had been "dampened" by "war-related advertising weakness".
Circulation of the New York Times, during a quarter in which the paper was rocked by plagiarism scandals and the resignation of editor Howell Raines, fell by 3.6% to 1.09m. Advertising growth at the paper slowed from 4% in the first quarter to 1.4% in the second.
But the company said advertising revenues had rebounded in June. The New York Times was 3.5% higher, while the broader group was 4.6% better than June 2002. Mr Lewis warned of further cost cutting to ensure the firm reaches its full-year targets.
At the Wall Street Journal, which is wrestling with the longer term difficulties of a drop in financial sector spend ing, advertising during the quarter was down by 7.9% on the same quarter last year.
Publisher Dow Jones pointed to an improving environment and is assuming advertising at the Journal will be slightly higher in the third quarter than a year ago. "While the advertising and business environment is still difficult, we are beginning to see some indications of improvement," said chief executive Peter Kahn.
Gannett said newspaper advertising revenues in June were 3% higher and said the driver was Newsquest, where results were "substantially stronger" than its domestic business.
Gannett, which publishes USA Today, was buoyed by the performance of its British business, regional newspaper group Newsquest, which was behind a 7% improvement in profits to $324m (£203m).
However, it said revenues at USA Today were marginally down due to the dearth of travel-related advertising during the Iraq conflict. Advertising revenues at the title failed to pick up after the war and were 1% lower in June.
At the New York Times Company, profits in the quarter fell from $78.8m a year ago to $72.8m. Chief executive Russell Lewis said the figures had been "dampened" by "war-related advertising weakness".
Circulation of the New York Times, during a quarter in which the paper was rocked by plagiarism scandals and the resignation of editor Howell Raines, fell by 3.6% to 1.09m. Advertising growth at the paper slowed from 4% in the first quarter to 1.4% in the second.
But the company said advertising revenues had rebounded in June. The New York Times was 3.5% higher, while the broader group was 4.6% better than June 2002. Mr Lewis warned of further cost cutting to ensure the firm reaches its full-year targets.
At the Wall Street Journal, which is wrestling with the longer term difficulties of a drop in financial sector spend ing, advertising during the quarter was down by 7.9% on the same quarter last year.
Publisher Dow Jones pointed to an improving environment and is assuming advertising at the Journal will be slightly higher in the third quarter than a year ago. "While the advertising and business environment is still difficult, we are beginning to see some indications of improvement," said chief executive Peter Kahn.
Gannett said newspaper advertising revenues in June were 3% higher and said the driver was Newsquest, where results were "substantially stronger" than its domestic business.
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