Comments on: A.H. Belo Again Posts Positive Numbers, Ctd.

By: Informed

Informed — Sat, 07 Nov 2009 04:39:50 +0000

Curtis it is true! The majority of newspapers are profitable. The issue is exactly what was stated in the documentry. Historically newspaers have earned 30% margins. Today they are producing half that due to ad revenue declines due to fragmentation in the marketplace. Companies that are publicly held have to satisfy board of directors and bankers who are expecting higher margins. This has choked some newspapers and forced finacial stress or worse. Most newspapers who shuttered their doors have been in two newspaper towns. DMN’s pricing strategy is risky. The question remains while improving margins of increased circ revenue coupled with production savings you risk the continued loss of ad revenue due to decreased audience. What’s the sweet spot? There’s the risk. Maroney continues to gamble—-DMN’s style. Stick around they change strategic course about every 18 months.

By: Long memory

Long memory — Mon, 02 Nov 2009 20:31:56 +0000

I think newspapers would LOVE to make 15 percent profit margins these days. I think they’d love to make any sort of profit. Period. The days of 20-to-30 percent profit margins are sooooooo last century.

By: Curtis Remington

Curtis Remington — Sat, 31 Oct 2009 21:07:25 +0000

Wick, I think the plan is generally a good one. I still think they need to quit giving away content online.

On a side note.. did you see the documentary on PBS the other day called “Stop the presse”? I was pretty good, but seemed to be oblivious to the real financial situation at newspapers. Many of the comments from various reporters and editors suggested that the papers are profitable, but not profitable enough. Their argument was that papers used to make a 30% profit margins and are now in the 10-15% range. Is that really true? I thought most of the papers in trouble have been losing money.

If you saw it, I’d love to know what you thought.