There’s no end in sight for the carnage in local and regional publishing: Newsquest’s advertising revenue declined 38.7 percent in Q109, compared to Q108, according to the earnings release from US parent company Gannett (NYSE: GCI). Newsquest’s digital earnings aren’t broken out specifically but the division’s classified sales were down 45.1 percent, including a 60 percent drop in property ads, a 51.4 percent in job ads and 43.2 percent less revenue from car ads.
— Lower costs: The company says it is already reaping the benefit of some some drastic cost-cutting measures in the UK including hundreds of job cuts and staff furloughs (enforced, unpaid leave) with operating expenses dropping 20.9 percent year on year across its newspaper businesses to $954.7 (£638 million).
— Hyperlocal: What is Newsquest doing online? The company’s Midlands division is launching a series of hyper-local news sites (via Newspapersoc.org): Kidderminstershuttle.com is the first of seven local titles to get area-specific local news feeds written by staff and unpaid citizen contributors. Trinity Mirror (LSE: TNI) pioneered its postcode-level news network at the Teesside Gazette two years ago and DMGT’s Northcliffe Media has since jumped on the ultra-local bandwagon. Newsquest has signed a video deal with Midlands VOD and IPTV content company Chamber TV.
— Mobile: Newsquest is also investing in mobile and launched 148 mobile sites to accompany newspaper sites across the country. Sites make money by charging readers for news and sport text updates as well as a mobile dating service.
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