US Newspaper Revenues Remain Weak In Early 2002
US newspaper advertising has remained soft since 11 September and looks weak going into 2002, according to analysts at ABN Amro. The broker warns that whilst there is some expectation that an early recovery will transpire, it is likely that there there will be a retraction by advertisers as it becomes clear that a late recovery is on the cards.
ABN is remaining neutral on the US newspaper sector and predicts that advertising worries will continue to weigh on companies’ share prices. However, a recovery in the second half of 2002, along with falling newsprint costs, could help to alleviate the strain on publishers’ stocks.
The latest forecasts from CMR predict that newspapers will show a 3.1% advertising revenue growth during 2002, the largest rate of growth of all the media bar the internet, as shown. The Newspaper Association of America (NAA), meanwhile, forecasts a moderate growth of just under 1% for the year.
| 2002 US Growth Estimates By Media | |
| % Growth | |
| Network TV | 2.0 |
| Spot TV | 2.5 |
| Cable TV | 1.1 |
| Syndication | 1.1 |
| Magazines | 0.6 |
| Newspapers | 3.1 |
| Outdoor | 1.8 |
| Internet | 8.8 |
| Source: CMR, 22.01.02 | |
