As with virtually all media companies, the after-effects of the 11 September attacks on the US have been felt harshly at US newspaper and television group Gannett. The company estimates that between $15 and $20 million was lost following the attacks, as TV stations ran commercial-free and newspapers lost advertisers.
Gannett saw total operating revenues fall by 3% to $1.5 billion year on year for the third quarter. These figures were bolstered by the acquisitions of Thomson Newspapers in July 2000 and Central Newspapers in August 2000. Without these additional businesses, total operating revenue would be down by 7% for Q3.
The group’s flagship USA Today saw revenues fall directly after 11 September, but has seen improvement since then. In the UK Gannett owns regional newspaper group Newsquest. It says that Newsquest ‘continues to make solid contributions to cash flow and earnings’, adding that cost controls and lower interest expenses helped to mitigate the impact of the weak advertising environment.
Gannett says that it now expects ad revenues to pick up faster than had previously been expected. US Government attempts to boost consumer spending – which nevertheless fell by 2.4% last month (see Forecasts) – are expecting by Gannett to aid a swifter recovery.
