Advertising slump hits Mecom

Mainland European newspaper publisher Mecom continued to feel the pinch of the global economic crisis last year as advertising revenues slumped.

The company, which publishes national and daily newspapers in the Netherlands, Denmark, Norway and Poland, posted earnings before interest, deprecation and amortisation of EUR125.5m, down from EUR174.8m the previous year as revenues slid to EUR1.41bn from EUR1.59bn.

In the Netherlands, revenues fell to EUR630.9m from EUR712.5m. Revenues fell to EUR411.8m from EUR469m in Denmark, to EUR240.1m from EUR270.9m in Norway and Polish revenues slipped to EUR126.7m from EUR140.3m.

While circulation revenues held up reasonably well, slipping to EUR545.5m from EUR544m, advertising revenues plunged to EUR665m from EUR813.5m.

'This last year has been an advertising crisis, not a newspaper crisis,' said chief executive David Montgomery.

'Our assets, both print and online, have been enhanced and have shown great resilience in maintaining readership and increasing audience and that bodes well for the future.'

Mecom also pointed out that the decline in advertising was slowing, with ad revenues down 15% in the second half compared with 18% for the full year and that trend continuing into 2010.

To back up the claim that newspapers are not in crisis, Mecom pointed out that the company is expanding new titles in the Netherlands, and re-launching and enhancing other ones.