The sharp decline in profits at Hollinger is the result of the deterioration in global advertising, which is affecting most media groups at present. At the
Telegraph ad revenues were down 17% in Q2; display fell 22%, classified 11%.
UK broadsheets are likely to suffer heavily this year, given that they benefited most from the dotcom boom of 2000, according to analysts at ABN Amro. Q2 is likely to be the most difficult comparable, although the continuing outlook for Hollinger and other UK and other newspaper groups remains quite poor, says the broker.
