'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.
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