'WSJ' Reports 21% Ad Loss, Blames Decline In Financial, Tech Ads

The Wall Street Journalsuffered a 21% loss in advertising revenue in its most recent quarter, parent company News Corp. reported Monday.

During a call with financial analysts, News Corp. CEO Robert Thomson said the sobering numbers were a reflection of declines in financial and technology advertising, as well as "mayhem in the market."

“The ad market is in upheaval,” he said. “Across our masthead, we saw a more challenging print marketplace as has already been articulated by other companies across the sector.”

As third-quarter earnings reports trickled out in the past few weeks, the New York Times Co. reported a 19% decline in print ad revenue, USA Today owner Gannett Co. reported a 15% drop in print ad revs, while Tronc, owner of the Los Angeles Times and Chicago Tribune, reported a 13% decline.  

Last week, WSJ began offering buyouts, warned of layoffs and cut down its "Metro" section.

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The good news came from The Wall Street Journal’s digital business, which accounted for a record 55% of the paper's revenue in the quarter. The newspaper will retain its paywall for the presidential election.

The Wall Street Journal’s circulation revenue rose 6% in the quarter. Digital subscriptions rose 2% from the previous quarter to 967,000 at the end of September.

News Corp. also owns U.K. papers like The Sun, the book publisher HarperCollins and real-estate site Realtor.com.

News Corp.’s overall ad revenue in its news division fell 11%. The company posted a loss of $15 million in its fiscal first quarter, which ended on Sept. 30.

In the same quarter last year, the company earned a $175 million profit.


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