Gannett posts 8% year-on-year fall in ad revenues

Gannett, the biggest newspaper publisher in the US and the owner of UK regional publisher Newsquest, has reported an 8% year-on-year fall in ad revenues in the first three months of 2010. The company said that ad revenue at Newsquest, which publishes more than 200 UK titles, fell by 8.7% year on year to $665.9m (£432.8m). The ad revenue fall in Gannett's US operation was 8.5% year on year. Gannett was buoyed by the results, pointing out that the overall fall was about a 10 per cent improvement compared with the final three months of 2009. In March total ad revenues were down just 3.2% year on year, the company said. "All ad category comparisons improved during the first quarter compared to last year's fourth-quarter comparisons," Gannett added. On a constant currency basis classified advertising was down 9.9% year on year overall in the first quarter. There was an 8.9% drop at its US operation, which includes USA Today, and 12.6% at Newsquest in the UK. To put this in perspective Newsquest saw a 23.5% year-on-year fall in classified ad spend in the fourth quarter of 2009 . Retail ad revenue was down 9.6% overall – 3.3% at Newsquest and 10.2% at Gannett's US operation. National advertising revenue was down 2.5% overall, down 2.8% year on year in the US and actually up 1.6% at Newsquest. In the UK, automotive advertising fell 10.1% year on year in the first quarter, employment advertising dropped 19.7% and real estate ads fell 1.3%. "The momentum we had at the end of last year continued through the first quarter," said Craig Dubow, Ganett's chairman and chief executive. "Revenue trend comparisons improved in the quarter reflecting the positive impact healthier economies in the US and the UK had on advertising demand as well as advertising revenue associated with the Winter Olympic Games." • To contact the MediaGuardian news desk email [email protected] or phone 020 3353 3857. For all other inquiries please call the main Guardian switchboard on 020 3353 2000. • If you are writing a comment for publication, please mark clearly "for publication".