• by Erik Sass , May 4, 2011

The news isn't getting any better for the newspaper business, as advertising revenues continue to slump and more layoffs hit major publishers. Indeed, there seems to be little hope of a print advertising recovery in 2011, holding out the possibility that the medium is simply stuck in a long-term decline -- at least on the print side.

This week, A.H. Belo, which publishes the Dallas Morning News among other newspapers, reported that total revenues declined 3.1% from $115.8 million in the first quarter of 2010 to $112.2 million in the first quarter of 2011.

Like other publishers, this decrease was due primarily to falling ad revenues -- which dropped 5.9% over the same period, including an 11.1% drop in display ad revenue to $24.9 million, and a 10.5% drop in classifieds revenues to $14.1 million. As with other major newspaper publishers, digital revenue was the sole bright spot, with a 5.4% increase to $8.8 million.

Meanwhile, McClatchy Co. revealed plans to lay off about 50 employees at three newspapers, according to mediabistro, including two dozen at the Kansas City Star, 20 at the Raleigh News & Observer and 15 at the Miami Herald. Thirty-five vacant positions at the Miami Herald are also being left unfilled, for total cuts of about 85 positions.

The news of the McClatchy layoffs comes not long after the company reported weak first-quarter results, with total revenues sinking 9.5% to $303.7 million in the first quarter. They were due, in large part to the continuing decline in ad revenues, which tumbled 11% to $225.1 million over this period.

Nor is McClatchy alone: Gannett Co. saw total revenues sink 3.7% to $1.25 billion in the first quarter, reflecting a 7.3% decline in publishing advertising revenues to $602 million, and The New York Times Co. saw total revenues fall 3.6% to $566.5 million, reflecting a 4.4% drop in total ad revenues to $298.9 million.

At Media General total revenues dropped 6.2% to $148.9 million, again reflecting the weak ad environment.