Gannett, the international media group has reported a small increase in earnings for the first quarter of 2003 but admitted that the war in Iraq had precipitated a slowdown in adspend.
The company, which publishes 100 daily newspapers in the US, including
USA Today, and owns Newsquest Media Sales in the UK, said yesterday that earnings for the first three months of 2003 totalled $249.8 million. This represents a rise of 2.6% over the same period last year. Revenues were up by the same amount from $1.51 billion to $1.55 billion.
Advertising and circulation revenues for Gannett’s newspaper group were up 3.7% and 1.1% respectively and more than compensated for a drop in television income. However as war approached, there was a fall-off in demand which does not bode well for the coming months.
Douglas McCorkindale, Chairman, President and CEO of Gannett commented: “The quarter started out strong but results, particularly at our television stations and USA Today, were depressed by the reluctance of advertisers to spend in an uncertain geopolitical environment.”
The war has led to a marked decline in travel-related advertising and Gannett accepts that it could take some time for the sector to rebound.
