How many bad days can there be for newspaper shares? Renewed concerns about the outlook for advertising, prompted by a statement from Gannett, saw prices dive. Johnston Press fell 8.2% to 126.25p. Trinity Mirror shed 4.1% to 226.75p while Daily Mail & General Trust lost 5.3% to 422.25p.
The US-based Gannett reported figures on Monday that showed classified advertising at its UK division, Newsquest, had fallen 11.7% in the first three months of the year. It also said that lower advertising revenue was spreading from property adverts to other areas. Property classified fell 14% from first quarter of 2007, while job and motor adverts fell by 15% and 21% respectively.
The broker, Cazenove, made negative comments yesterday, saying: "We still see near-term risks to the downside and would stay cautious ahead of trading updates." That soon had an impact on investors. (Source: FT.com)
