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'Newsweek' Stab At Lower Circ May Not Pay Off

Newsweek's plans to reshape the magazine into a lower-circulation weekly with a more Economist-like feel do not seem to be paying off. Tucked in the fourth-quarter earnings report from parent Washington Post Company were numbers suggesting the magazine lost $28.1 million in 2009, the first year of the process.

The company said its magazine unit -- encompassing only Newsweek and the recently divested Arthur Frommer's Budget Travel -- lost $29.3 million last year, as revenue declined by 27 percent to $184.2 million. Budget Travel was responsible for a loss of $1.2 million on revenue of $18.7 million. Since Newsweek lowered its circulation -- from 2.6 million to 1.5 million -- it was forced to make corresponding cuts in its ad rates. The company hopes that lower production, distribution and employee costs will eventually enable it to return to profitability.

Read the whole story at New York Post »

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