Monday, August 29, 2005
US: "Newspaper sector is stuck in the mud"
According to a report released by Goldman Sachs last week, "the newspaper sector is stuck in the mud", reports Editor & Publisher. Ad revenues for July were up 2.9% with August expected to be about the same. Retail was up 3% and "national has improved slightly (against easy comps). But what's worrisome is that classified ad growth is slowing", states Editor & Publisher.
The help wanted category continues to suffer from 'the burden with growth in the mid-teens' in online and print. The real estate category has slowed modestly and the automotive category is "exceptionally weak." And circulation revenues continue to decrease and were down 2.6% year-to-date. However, ad spending on newspapers' websites increased double-digit in recent quarters, reports The Philadelphia Inquirer.
"Taking all this into account, total industry revenue growth is about 2%, year-to-date, 'the industry's weakest performance since the 2001-2001 recession' ", states Editor & Publisher.
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