By: E&P Staff Gannett reported today that total revenue fell 6% to $606.2 million in May compared to the same period a year ago. Advertising revenue at the company's newspaper division dropped 6.8% to $404.7 million due to weakness at its U.S. community newspapers.
All major advertising categories experienced declines. Local advertising revenue was down 6.3%. Classified revenue decreased 8.0%. Within the classified category, real estate dropped 9.2%, employment fell 9.6%, and automotive slipped 13.0%. National ad revenue was down 5.4%.
At USA Today total ad revenue fell 7.8% on paid ad pages of 324 compared to 379 last year. Some categories grew including telecommunications, home and building, packaged goods, and credit card. The increases made in those categories could not offset declines in entertainment, travel, automotive, and technology. The weekend supplement USA Weekend reported gains in national advertising.
Circulation revenue was down 2.4%.
Broadcasting revenue dropped 8.9% due to the absence of significant political revenue.
Goldman Sachs responded by trimming estimates for the 2Q, saying that "even the most diligent" cost-cutting in the newspaper industry can not make up for revenues losses.
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