By: E&P Staff The small community daily is no longer immune from the forces that have ravaged profitability at big-city papers, according to a study released Wednesday by the Inland Press Association.
Inland?s Five-Year Trend Analysis found that operating profits at newspapers of all circulation sizes fell during the five-year period ending in 2008. On average the operating profit dips were in double-digit and even triple-digit percentages, the study found.
In a contradiction to conventional wisdom about smaller papers, Inland found that the steepest decline in profits occurred in daily papers in the 25,001- to 50,000-circulation size. As a group their profits fell 190% in the past five years.
Inland did, however, find that in the smallest circulation category, under 15,000, revenue did grow in the five years, though modestly. Revenue ticked up 2.4%, Inland said.
Newspapers remain profitable, said Tim Mather, who helped prepare the report using data from Inland?s Cost and Revenue Study.
?It was interesting to see that, despite the downturns in virtually all revenue sources and the significant decline in profits, the Trend Analysis average overall shows newspaper operating profits still ranged from more than 11% to 15% of gross revenue in all circulation groups except 25,001-50,000,? said Mather, Inland?s financial studies manager.
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