More bad news for news publishers

I told myself I wouldn’t bother rounding up bad news about the new business anymore but feel like pointing to these:

“Another Australasian media company – APN News & Media – is reducing the value of key assets as the advertising downturn bites on both sides of the Tasman.

“The owner of half of New Zealand’s newspaper and radio industries yesterday reported underlying profits of A$140.1 million ($177 million) for the 12 months to December 31, down 17 per cent from A$169.5 million in 2007.

“With an A$146.8 million reduction in the valuation of New Zealand assets bought from Wilson & Horton in 2001 – mostly related to the New Zealand Herald – the company wound up with an A$24 million reported loss for the year. Nearly all APN operations have been hit by falling revenue and chief executive Brendan Hopkins said the annual result was satisfactory in a tough market.

“Earlier this week Fairfax Media announced an A$447.5 million writedown in the value of its mastheads. Including the writedown, the company made a loss of A$365.3 million for the six months.”

San Francisco Chronicle in danger of closing

“The San Francisco Chronicle joined the lengthening list of imperiled newspapers Tuesday as its owner set out to purge the payroll and slash other expenses in a last-ditch effort to reverse years of heavy losses.

“If it can’t reduce expenses dramatically within the next few weeks, the Hearst Corp. said it will close or sell the Chronicle, northern California’s largest newspaper with a paid weekday circulation of 339,430.

“Hearst didn’t specify a savings target nor a deadline for wringing out the expenses. A Hearst spokesman didn’t immediately respond to messages Tuesday.

“But management made it clear that the cost-cutting will require a significant number of layoffs.

“Our current situation dictates that we accomplish these cost savings quickly,” Chronicle Publisher Frank Vega wrote in a memo to the staff. “Business as usual is no longer an option.”

Conde Nast revenue hit

“FOR years, Condé Nast seemed to ride above the fray in the consumer magazine world. But in 2009, that is no longer the case.

“The publisher is reeling more than its rivals, as luxury-goods retailers hoard their ad dollars. While the industry is down 24 percent in ad pages so far in the first quarter, many of Condé’s venerable titles are down 30 percent. Start-up mag Portfolio is down a staggering 60 percent, while Wired is off 57 percent.”