Zacks Industry Outlook Highlights: Gannett and News Corp.

CHICAGO--(BUSINESS WIRE)--Zacks.com releases the latest Industry Outlook. Today’s interview is with senior analyst Ann Northrop, who talks about the Publishing Industry, including Gannett (NYSE: GCI) and News Corp (NYSE: NWS).

A synopsis of today’s Industry Outlook is presented below. The full article can be read at http://at.zacks.com/?id=2678.

Newspapers have fared far worse than magazines, as web-based news options have proliferated in recent years. Circulation of newspapers fell 2-3% on average each year from 2005 through 2007, and that has accelerated with to the mid-single digits in recent months as the economy slowed. Ad revenue is falling between 15-20% at many publications.

National newspapers, however, have out-performed the group significantly, particularly USA Today, a subsidiary of Gannett (NYSE: GCI) and The Wall Street Journal, owned by News Corp (NYSE: NWS).

Most publishing houses are rapidly cutting costs in line with their shrinking revenue stream, while attempting to build complementary Internet operations. But many are saddled with debt, leaving few options other than disposing of formerly attractive assets at trough valuations and cutting their dividends.

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