• by Erik Sass , July 27, 2009

Rounding out a quarter of very weak revenue figures for the newspaper business, A.H. Belo said that total publishing advertising revenues fell 30% in the second quarter compared to the same period in 2008, from $125.3 million to $87.5 million, while Media General reported a 26% drop, driving an overall revenue decline of 20% from $204.9 million to $163.8 million.

Income from continuing operations before taxes was $3.8 million at Media General -- up from $2.6 million last year, while A.H. Belo reported a loss of $5.5 million compared to a $4 million loss last year.

The latest figures are in line with general trends in newspaper ad revenues -- led by steep declines in classified ad revenues, for many years the mainstay of the business. Although it did not cite specific figures, A.H. Belo, which publishes The Dallas Morning News among other papers, saw declines in classified, local and national advertising in all its markets.

Media General reported that classified ad revenues declined 35.2%, led by an alarming 63% drop in recruitment revenues and a 55% drop in real estate revenues in metro markets; automotive fell 27%. Retail revenues fell 21%, while national revenues fell 19%. Media General's broadcast business also suffered, although less severely, with a 21.4% decline in total revenues.

Like other newspaper publishers, A.H. Belo and Media General had little good news to report from their online businesses, which have depended heavily on classified revenues. Internet ad revenue fell 21% at A.H. Belo, to $9.8 million, or 7.6% of total revenues. Media General reported increases in its online coupon, shopping and local online ad business -- but these were more than offset by losses in classifieds, national, and regional advertising, resulting in an overall drop of 5.7% for its interactive division.

Like other newspaper publishers, both companies have implemented stringent cost-control programs. At Media General, this has included layoffs, suspending 401(k) contributions, freezing the pension plan, and unpaid furloughs -- resulting in a 23% decline in overall operating costs, from $195 million to $150 million for ongoing operations. Salary expenses fell 24.6%, benefits 42%. A.H. Belo cut total operating costs 22%, from $163.2 million to $150.2 million.

The news follows reports of identical ad revenue declines of 30% at Gannett, McClatchy and the New York Times Company, which reported second-quarter results earlier this month.