Newspaper publisher Journal Register is exploring the sale of 26 Massachusetts and Rhode Island publications due to slower growth and because it wants to focus on its more profitable online ventures. The company, which owns 393 papers, including the New Haven (Ct.) Register, called the newspaper market “extremely challenging” and said its online operations generate a higher return on capital, profits and cash flow.
Among the papers to be sold may include: The Herald News in Fall River, Mass.; the Taunton Daily Gazette in Taunton, Mass.; The Call in Woonsocket, R.I.; The Times in Pawtucket, R.I.; and the Kent County Daily Times in West Warwick, R.I.
For the 12 months ended June 25, the 26 newspapers generated revenue of $39.9 million, and revenue was $556.6 million in 2005. Online operations are expected to nearly double its revenue to $18 million this fiscal year from $9.3 million in 2005. Last year, online revenue rose by more than 50 percent.
Also today, Dow Jones disclosed that it’s seeking to sell or swap some of its Ottaway community newspapers in six markets, though for a slightly different reason: to raise cash to repay debt, for investment in current businesses and as a means to use roughly $155 million of capital loss tax carry-forwards that expire on Dec. 31.
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