Thursday, September 08, 2011

WSJ: Facebook doubles revenue in year's first half

From a Wall Street Journal story today:

Continuing its rapid pace of growth, the social network doubled its revenue to $1.6 billion in the first half of 2011 from about $800 million a year earlier, a person familiar with the matter told the WSJ.

Facebook's improving financial performance comes as speculation has swirled over its plans for an initial public offering. The revenue figures for privately held Facebook were earlier reported by Reuters, the WSJ says.

Gannett's revenue during the first half fell 2.9%, to $2.6 billion. Newspaper and other publishing advertising fell 6.9%, to $1.2 billion.

Related: Yahoo fired CEO Carol Bartz on Tuesday because she wasn't meeting 2011 performance goals, the WSJ says. Gannett and Yahoo are in the second year of an ad-sales partnership.

1 comment:

  1. Media Post had a great article on media winners and losers today. While online was the clear winner, the article addresses the decline of newspapers. In short, since 2005, newspapers have lost nearly 50% of their revenues. That's almost $24 billion dollars in only 5 years. So $24 billion dollars that paid for enterprise reporting, photographers, journalists, pressman and marketers is gone. And so are those jobs.

    Some other revenue details mentioned include:
    Real estate revenues tumbled from $5.2 billion in 2006 (the peak of the bubble) to $1.1 billion in 2010, with little recovery hopes. In the first half of 2011, real estate classified revenues have declined another 19.8% from $520 million to $420 million.

    Automotive classified revenues peaked at $5.2 billion in 2003, but then declined steadily to $3.3 billion in 2007 before plunging to $1.24 billion in 2010. And once again, continuing weakness in car sales holds out little hope of a turnaround in this category. From $587.5 million in the first half of 2010, total automotive classified revenues dropped 9% to $534.7 million in the first half of this year.

    Recruitment revenues have also dried up. After peaking at $8.7 billion in 2000, they stood at $756 million in 2010.

    And while newspapers do have successful websites, online ad revenues remain a relatively small part of total newspaper advertising. In the first half of 2011, total digital revenues of $1.61 billion represented just 13.9% of total ad newspaper ad revenues of $11.55 billion.

    Even if Gannett were a well run company with integrity, there would have to be massive layoffs. Considering that it is neither please begin to consider your life after newspapers. Advertisers will continue to find cheaper competitive alternatives for newspapers and the current business model cannot be sustained long term.


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