More signs that the housing bust and credit crunch have precipitated an advertising recession that is hurting traditional print media. Today the New York Times Company shares hit a 52-week low on news that August ad revenue declined 3.2 percent. From MarketWatch:
”Revenue at the publisher’s News Media Group dropped 4.6% from the same month a year ago, to $121.5 million. Classified revenue, traditionally considered the most vital component of newspaper advertising, plunged 20% on weakness in real estate, help-wanted and automotive ads.”
A few bright spots are that online ad revenues at the About.com Group rose 27.4 percent, while online ad revenue for the News Media Group rose 28.2 percent. Lehman Brothers analyst Craig Huber said today, however, that he believes newspaper stocks could fall 20 percent in the next 12 to 18 months.
(image via clipart)