Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:
Ad Woes Worsen at Big Newspapers [Wall Street Journal]
Summary: The long-feared decline in revenues from print advertisements at big newspapers has finally materialized after a long period of low growth -- a serious problem that compounds the papers' woes over dropping circulation. Tribune, the New York Times and Belo Corp. all reported drops in ad revenue. The problem appears to be pervasive, as every major ad category showed weak results (autos, real estate and employment). Tribune reported a 2% drop in publishing ad revenue, The New York Times reported a 4.2% drop, and Belo, which publishes the Dallas Morning News and the Providence Journal, reported a 5.5% slide. The Times and the Tribune are now exploring asset sales as a means to recoup. The Times plans to sell its broadcasting division, ramp up its Internet-related businesses and consolidate its New York printing operations.
Related links: New York Times Q3 2006 Earnings Call Transcript • Tribune Q3 2006 Earnings Call Transcript • Newspapers: Another Slide Coming? • Dow Jones: WSJ's Print Ad Revenue Sluggish, But Profits Beat Estimates • NY Times Earns Fall on Weak Ads, Charges [Newsday]
Potentially impacted stocks and ETFs: New York Times Co. (NYSE:NYT), Tribune Co. (TRB), Belo Corp. (NYSE:BLC)
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