[August revenue results compared to prior months]
Updated at 1:51 p.m. ET. Total operating revenues fell 9.5% last month from August 2007, as the broadcasting division delivered a big increase from Olympics and political campaign advertising, Gannett said today. The results were better than July's 12.3% decline. USA Today's advertising revenue last month weakened anew, however.
Overall revenues totaled $499.8 million, down from $552.5 million in August 2007, the company's monthly statistical report showed. Revenue in the broadcasting division, which includes 23 TV stations, surged 20.7% from a year ago. "The growth was driven by almost $24 million in revenue related to the Olympics on our NBC affiliates and a $6.9 million increase in politically related ad demand,'' the report said.
At flagship USA Today, advertising revenue fell 13.5% on paid ad pages of 208 vs. 236 in August 2007, the report said. Last month's slide compared to a 5.5% decline in July.The newspaper division, which comprises 84 community dailies, continued to weaken on more dismal classified advertising losses, especially in real estate. Division revenue fell 16.8% from August 2007. (The division does not include USAT.) Classified revenues were 28% lower. Within that category:
- Real estate: down 40.9%
- Employment: down 33.6%
- Automotive: down 21.1%
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how can total revenue be down less then any of the the divisions
ReplyDelete1:21PM, I sure hope you don't work for an accounting department within Gannett.
ReplyDeleteIt's going to have to be one hell of Christmas season, or there will be blood to pay.
ReplyDeleteI heard rumors that back to school ads didn't appear, but these numbers show Q3 is going to be even worse than the first two quarters. Makes USAT layoffs now almost certain.
ReplyDelete1:21 You did not read the chart correctly. Broadcast is up. The numbers are right.
ReplyDeleteIf you read the press release more closely, the nuances of the business are evident. Classifed in the community papers is of course bleeding. USAT hit mostly by absence of national automotive which follows the economic impact of the gas crunch.
ReplyDeleteAs gas comes down, that may help the auto business. However, financial sector is now an unknown.
Broadcast numbers fluxuate every other year depending on olympics and elections...This is typical, I believe that it is less than normal though.
ReplyDeleteUSAT used to get a lot of financial ads -- credit cards, bank ads. This BOA development could be a plus for USAT because it now thrusts the bank into stock and bond activity it was prohibited from being involved in under the old Glass-Steagel law. That would be in the long-term. In the short term, it has to digest what it just took on its plate.
ReplyDeleteThe recent CareerBuilder deal lists Cape Publications, Inc. and Gannett Digital, just two of the Gannett subsidiaries. Where will the revenue be recorded and how does Gannett make money from CareerBuilder?
ReplyDeleteGannett owns the majority so assume it gets that percent of the profits and /or revenues.
ReplyDelete5:45 PM
ReplyDeleteI know Gannett owns it. They said that in the press release. But if you look at the document, you'll see it does not say Gannett. It says the deal is with Gannett Digital and a Cape Publications, Inc. Now, those are in two different divisions, aren't they? Which division put out the millions and which division reaps the rewards? Sometimes the little bittiests things can make huge differnces.