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More fallout from poor newspaper earnings

Posted by Cory Bergman on April 20, 2007

In the wake of poor earnings reports at three major newspaper companies, Reuters posts a story with this opening line, “U.S. newspaper publishers are betting the Internet is the key to their survival, but a worsening classified advertising slump is hampering efforts to make good on their digital strategies.” And this quote from an analyst, “My sense is this is a real red flag for the industry. Rapid online growth appears to be dimming. That’s a big problem.” Online ad growth has slowed significantly at Tribune (from 30 to 17 percent), Gannett (30 to 16 percent) and NYT Company (from 72 to 22 percent). Another analyst weighs in and says that more acquisitions are needed “and that is not likely good for short-term shareholder value.” Yet he cautions “we’re just talking about a quarter here.”

Plus: Media General reports first quarter loss

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