Zacks Industry Outlook Highlights: McClatchy, The New York Times and Gannett - Press Releases

For Immediate Release

Chicago, IL – July 7, 2010 – Today, Zacks Equity Research discusses the Publishing Industry, including The McClatchy Company (MNI), The New York Times Company (NYT) and Gannett Co. Inc. (GCI).

A synopsis of today’s Industry Outlook is presented below. The full article can be read at http://www.zacks.com/stock/news/36514/Publishing+Industry+Review+and+Outlook+-+July+2010.

The slide in newspaper circulation, which ran through the 1990s and through the 2000s, is accelerating. Earlier, the circulation of newspapers was falling by less than 1%, but the rate of decline jumped to 2% in 2005, 3% in 2007 and 4% in 2008, with more and more readers migrating to the Internet.

However, the recent data issued by the Audit Bureau of Circulations (ABC) indicated that the rate of decline in circulation is easing. Newspaper circulation tumbled 8.7% for the six months ended March 31, 2010, reflecting an improvement over a decline of 10.6% registered for the six months ended September 30, 2009.

Despite the fall in newspaper circulation, some companies are reporting higher revenue from circulation due to the increase in subscription and newsstand prices. At The McClatchy Company (MNI), circulation revenue climbed approximately 2% in first-quarter 2010.

While the increase in prices for print editions is generating more circulation revenues, it is also resulting in subscriber losses due to the shift in preference for free online content.

Newspaper Advertising Trend Improves

With the improvement in the economic scenario, positive trends are being witnessed in both print and digital advertising with advertiser spending improving its pace. Consequently, the rate of decline in advertising revenue is decelerating.

According to the data released by the Newspaper Association of America, total advertising revenue for U.S. newspapers dropped 10% in first-quarter 2010 (January to March) to $6 billion, signifying the best quarterly performance since the third quarter of 2007, just before the recession began. The trend reveals a gradual improvement in the advertising environment. Print advertising declined 11% to $5.3 billion with classified advertising revenue down 14% to $1.3 billion.

Total advertising revenue at The New York Times Company (NYT) dropped 6% in first-quarter 2010, as against a fall of 15% in fourth-quarter 2009. At Gannett Co. Inc. (GCI), publishing advertising revenue dropped 8% in first-quarter 2010, after plunging 18% in fourth-quarter 2009.

In the span of four years, the newspaper industry has incurred substantial losses. Advertising revenues had declined by 46% from the level of $11 billion achieved in first-quarter 2006.

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