Newspaper Companies NYT and GCI Deserted by Investors on Concerns Over Continuing Revenue Decline

Shares of The New York Times Company (NYSE: NYT) are down $0.21 (-1.63%) after reporting a 10.1% decline in total (July) revenues versus July 2007. Advertising revenues decreased 16.2% and circulation revenues decreased 0.5%.

The only bright spot was Internet revenues, which grew 2.6% and Internet advertising revenues increased 5.5% in July. Internet businesses include NYTimes.com, About.com, Boston.com and other Company Web sites. In total, Internet businesses accounted for 12.5% of total revenues in July versus 11.0% in July 2007.

Last Friday, Gannett Co., Inc. (NYSE: GCI) reported a 12.3% decline in operating revenues for the seventh period ended August 3, 2008 compared with the same period in 2007. Publishing advertising revenues in July were 16.7% lower versus the same period a year ago. Retail advertising revenues declined 10.5% and Classified revenues declined 25.2% in July.

Gannett Co., Inc. is an international news and information company. In the United States, the Company publishes 85 daily newspapers, including USA TODAY, and nearly 900 non-daily publications.

These Newspaper stocks have been deserted by investors and are trading close to 52-week lows. The share price range for NYT over the past year is $12.08 - 22.45 and the stock is hovering around $12.68. The 52-week range for GCI is $14.62 - 49.66 and shares are trading at $17.00.

The New York Times Company is a diversified media company, including newspapers, Internet businesses, television and radio stations, and investments in paper mills and other investments.[SM]

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