End Of year News Round-Up: Newspapers
January
It was a poor start to the year for Guardian Newspapers, which announced plans to cut 35 jobs across the group as a result of the deterioration in the advertising market (see Guardian Newspapers To Cut 35 Jobs). Pearson was also forced to raise the cover price of the Financial Times from 90p to £1 after announcing that profits at the FT Group for 2001 would be down 40% year on year (see Pearson Increases FT Cover Price). On a more positive note, the newly relaunched Sunday Business reported a successful first week of sales (see The Business Reports 50% Sales Increase) and The Times announced plans for a revamp that included the launch of two new broadsheet sections.
February
The latest figures from the Newspaper Society showed that regional press display advertising expenditure increased by 4.9% year on year during 2001 (see 2001 Regional Newspaper Adspend Up 4.9%). Meanwhile, Trinity Mirror announced plans to relaunch the Mirror in order to encourage loyalty and attract younger readers (see Mirror To Undergo Brand Relaunch). It also denied press reports that it was putting the Sunday People up for sale (see Trinity Denies Sunday People Sale Rumours). Things were less positive for News International’s parent group, News Corp, which reported that advertising revenues at all of its newspaper businesses were weak. Shortly afterwards Peter Stothard announced his intention to step down as editor of The Times after almost ten years at the title.
March
The end of the first financial quarter saw Pearson‘s finance director, John Makinson, reveal that profits at the group were down 12% in 2001, due to the ongoing advertising downturn. In comparison DMGT, publisher of the Daily Mail, issued an upbeat trading statement reflecting an optimistic outlook for the coming year (see Daily Mail Forecasts ‘Satisfactory’ 2002, Despite Tough Times). Meanwhile, Johnston Press announced plans to buy Regional Independent Media, publisher of 53 regional newspapers, in a deal worth £560 million. (see Johnston Completes RIM Acquisition)
April
April saw the Mirror drop its red masthead and revert back to its original title, the Daily Mirror, as part of a revamp to position itself as a “serious” newspaper (see Mirror Drops Red Top For New Look). Shortly afterwards Richard Desmond cut the price of his Express titles and launched a TV advertising campaign in an attempt to halt declining sales (see Desmond Cuts Price Of Express Titles). Meanwhile, Independent News & Media released preliminary full year results for 2002, which revealed a slump in the company’s profits in what it described as a ‘difficult’ year (see Independent Reports ‘Robust’ Performance As Profits Slump). Pearson also revealed that advertising revenue across the Financial Times group had been ‘significantly lower’ for the first four months of this year, compared to 2001.
May
The recently relaunched Daily Mirror sparked a fierce price war by cutting its cover price to 20p, a move which was quickly followed by News International’s Sun (see Daily Mirror Cuts Cover Price). Over at Farringdon road, the Guardian revamped its Saturday books and arts coverage with the launch of a new 40-page tabloid section. Pre-tax profits at the Daily Mail & General Trust fell by 9% to £65 million in the half-year ending 31 March 2002 and turnover at the group fell by 1% to £950 million (see DMGT Sees No Substantial Advertising Improvement In 2002).
June
Less than a month after sparking a tabloid pricing war by reducing its price to 20p (see NewsLine), the Daily Mirror announced that its coverprice would return to 32p in selected regions (see Mirror Brings Partial End To Price Cut). Poor local press advertising conditions in the south east and London caused a regional revenue decline of 2.3% at Trinity Mirror for the first half of the year, whilst Independent News & Media said that it is ‘cautiously optimistic’ that 2002’s results would show an improvement on those achieved during the past year. Pearson’s chief executive, Marjorie Scardino, revealed that prospects for significant trading recovery in the second half of the year looked good (see No Signs Of Ad Recovery At FT Group, Says Pearson) and advertising revenues at regional newspaper publisher, Johnston Press, rose by 2% in the first five months of the year.
July
The UK’s national newspapers announced plans to unite to form an organisation aimed to increase their sector’s share of advertising revenue (see National Newspapers Unite To Promote Ad Space), whilst Mirror Group Newspapers restructured its advertising department, merging it magazine and newspaper display teams and reducing the number of managers reduced from 16 to eight (see Mirror Group Restructures Advertising Department). Meanwhile, Pearson posted a slight profit for the six months ended 30 June 2002 (see Ad Recession At FT Group Hits Pearson) and Trinity Mirror, the UK’s largest newspaper publisher, noted signs of an improvement in advertising conditions. August Trinity Mirror announced that the Sunday People would be re-named the People as part of a £2 million relaunch that included a five-week television advertising campaign (see Trinity Mirror Relaunches Sunday People). The publisher also shelved plans to create a joint advertising sales operation with the Telegraph Group (see Mirror Group And Telegraph Abandon Joint Sales House Plan). Advertising revenues at the Telegraph Group continued their downward spiral during the second quarter of 2002 as the ailing recruitment market showed no signs of recovery (see Telegraph Revenues On The Slide). However, first half pre-tax profits at Johnston Press jumped by 25% to £51 million, boosted by the acquisition of Regional Independent Media back in March (see Johnston Press And IFG Release First Half Results).
September
Chief executive of Trinity Mirror, Philip Graf, announced his decision to leave the company next summer (see Graf To Step Down As Chief Executive Of Trinity Mirror) and managing director of the Evening Standard, Sally de la Bedoyere, stepped down after 17 years at Associated Newspapers (see Evening Standard Managing Director Steps Down) to be replaced by the Metro’s Mike Anderson. Meanwhile, Express Newspapers confirmed that the new Sunday Star would be launched with a cover price of 35p, sparking fears of a price war with tabloid market leader the News of the World (see Sunday Star Set To Spark New Price War). On a less positive note the Daily Mail & General Trust announced that national press display advertising in the UK was ‘volatile and unpredictable’.
October
Panellists at this year’s annual Media Question Time agreed that newspapers are still a valued form of media in a world of fragmentation and vast technological change (see Newspapers Are Adapting To The New Media Environment). Meanwhile, the Telegraph Group brought an end to the practice of bulk sampling and reduced the number of oversees sales (see Telegraph Group Puts An End To Bulk Sales). Later in the month the advertising sales director of the Evening Standard, Mike Orlov, stepped down (see Evening Standard Loses Ad Sales Director), whilst former ITV daytime controller and BBC head of marketing, Maureen Duffy, was appointed chief executive of the recently formed Newspaper Marketing Agency (see Maureen Duffy Takes Newspaper Marketing Role).
November
Reports emerged that Richard Desmond is planning the launch of a free evening newspaper for London, called the Evening Mail. (see Desmond Plans To Launch New Evening Paper For London). He was also reported to be planning to launch a £50 million advertising campaign, as part of a plan to increase pressure on rivals the Daily Mail and the Daily Mirror. Meanwhile, the Sun ended its six-month price war with the Mirror by increasing its cover price to 30p in the north of England and Ulster and 25p in Scotland (see The Sun Signals An End To The Price War) and Times Newspapers unveiled plans to develop its commercial operation with the launch of a new integrated marketing division (see Times Newspapers To Launch Integrated Marketing Division).
December
In what was arguable one of the sector’s biggest surprises of the year, it was announced that IPC chief executive, Sly Bailey, is to replace Philip Graf as chief executive of Trinity Mirror. This prompted speculation that Joe Sinyor, chief executive of Trinity Mirror’s newspaper division, could step down. On a less positive note, it was revealed that recruitment advertising in the national press had fallen by 21.5% year on year to an eight-year low (see Newspapers Face Massive Decline In Recruitment Ads). Meanwhile, Johnston Press announced that second half advertising levels had shown continued, modest growth up by 2.8% in the five months to 30 November 2002, whilst Pearson said that it did not expect to witness an upturn in ad sales at the Financial Times next year. Trinity Mirror revealed that third quarter advertising revenues had fallen by 2.5% (see Trinity Mirror Ad Revenues Pick Up In Q4).
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