Radio Stabilized, Newspapers Slammed In 3Q

Media Post's MediaDaily News
by Erik Sass, Friday, November 12, 2010, 6:31 PM

The results are in, and while the Newspaper Association of America and Radio Advertising Bureau are still adding the numbers, a quick glance over third-quarter results from big publishers and radio groups suggests their fortunes are diverging, following a long period of tandem decline.

In short, radio is perking up as the economy enters a slow, tentative recovery -- but newspapers are continuing to suffer losses.

Most big radio groups reported single-digit growth in revenues in the third quarter compared to last year -- modest, but noteworthy on the heels of two years of straight declines.

At Clear Channel Radio, the nation's largest radio group, total revenues increased 6% from $703.2 million to $743 million, buoyed by increases in local and national ad revenues across categories including automotive, political, financial services and health care.

CBS Radio's revenues grew 9%, although the company did not release specific revenue figures. Cumulus Media saw total revenues inch up 3.6% to $66.4 million, as Emmis radio revenues grew 4% to $51.7 million, and Entercom reported that third-quarter revenues increased 3% to $102.7 million.

Taking the average, the big radio groups enjoyed average revenue growth of 5% in the third quarter of 2010 compared to 2009.

Conversely, big newspaper publishers continued to struggle, with single-digit declines across the board -- also noteworthy, since they are compounding several years of losses. Luckily, many own substantial broadcast TV businesses, which are buoying their bottom line.

At the New York Times Co., total revenues slipped 2.7% to $554.3 million due to a 1% drop in ad revenues and a 4.8% drop in circulation. McClatchy saw total revenues decline 5.7% to $327.7 million in the third quarter, reflecting a 6.4% drop in ad revenues and a 3.8% drop in circulation.

At Gannett, publishing revenues slipped 4.8% to $969.4 million, mostly due to a 5.1% drop in advertising revenue at the division, but total revenues were flat at $1.31 billion thanks to its TV business. Almost alone among major publishers, The Washington Post enjoyed a 5% increase in newspaper revenues, to $163.4 million, due mostly to increases in general advertising and digital revenues.

The news was not much better at smaller publishers.

A.H. Belo saw total revenues slip 6.1% in the third quarter, to $119.1 million; Media General saw its publishing division revenues shrink 7.6%, offset by an 18% increase in TV revenues. E.W. Scripps' newspaper revenues fell 3.8% to $100 million, offset by a 31% increase in TV revenues, to $78.5 million.

Adding up all their growth rates, these companies saw newspaper revenues decline an average of 3.7% in the third quarter.