Hollinger chairman Lord Black faces a frosty reception from shareholders tomorrow as concerns mount over falling ad revenues and huge debts at the international media group.
Operating revenues at the Telegraph Group, Hollinger’s UK newspaper division, totalled £84 million in the first quarter of 2003, down from £86.6 million in the same period last year. This follows an overall decrease of 5% in 2002 (see
Telegraph Fails To Arrest Revenues Decline).
The company issued a statement blaming “poor overall confidence in the economy” for the decline, which was most pronounced in March. Advertising revenues slipped by 6.5% to £55.1 million in Q1 with recruitment and motoring seeing the largest falls.
Hollinger has long term debts of $500 million and has seen its share price plummet by more than 70% in the past year. Nonetheless, Lord Black and his fellow executives have continued to receive millions of dollars in payments, an issue which will no doubt be raised at the company’s AGM in New York on Thursday.
