Posted on 06/23/2004 9:09:53 AM PDT by Grampa Dave
Merrill Lynch Fears More Circ Flaps; Advertising Fallout
By Jennifer Saba
Published: NEW YORK Troubled by last week's circulation scandals at Hollinger International's Chicago Sun-Times and the Tribune Co.'s Newsday and Hoy, Merrill Lynch's Lauren Rich Fine released a report today calling into question the reliability of circulation figures for the entire industry. "Our biggest fear," the report said, "is that these two announcements may not be isolated incidents."
The worst consequence could be declining ad revenue, if advertisers doubt the reliability of circulation figures. The report says that the most vulnerable spot will be preprint inserts as they are purchased entirely on circ reach. It added: "Circulation is likely to remain a controversial topic in the near term."
The report also takes to task the Audit Bureau of Circulations, saying that the overstatement of circ figures seems to "suggest that there may be loopholes in the ABC audit system" and "at the very minimum, it suggests that ABC's audits need to be completed much sooner." Many newspapers use the ABC publisher's statements to sell advertising because there is a lag in the ABC audited reports. All newspapers are audited once a year. Those with a circ under 25,000 have the option of going through an audit every two years.
Also Fine points to the Rosie magazine circulation flap and the ripples it sent through that industry: "It appears that concerns about inaccuracies in the magazine circulation statements, a fallout from the Rosie magazine trial, have had more impact on magazine advertising in the last year than we thought. We hope the same will not happen to the newspaper industry."
-------------------------------------------------------------------------------- Jennifer Saba (jsaba@editorandpublisher.com) is associate editor for E&P.
"The worst consequence could be declining ad revenue, if advertisers doubt the reliability of circulation figures. The report says that the most vulnerable spot will be preprint inserts as they are purchased entirely on circ reach. It added: "Circulation is likely to remain a controversial topic in the near term."
More ammuntion for possible law suits against the left wing newspaper owners for acts of fraud.
Now Wall Street is putting out warnings about lies re sold newspapers.
This comment about the failed Rosie BS magazine is interesting:
" Also, Fine points to the Rosie magazine circulation flap and the ripples it sent through that industry: "It appears that concerns about inaccuracies in the magazine circulation statements, a fallout from the Rosie magazine trial, have had more impact on magazine advertising in the last year than we thought. We hope the same will not happen to the newspaper industry."
More bad news for the liberal mediots who own the fishwraps which lie about circulation/subscription numbers.
Hey, what's the big deal? We've known that these papers lie for years. Where's the surprise? And, there is no connection betwen their circulation fabrications and their editorial pages mendacities!
BTTT
So, is Wall Street worried about things like declining single paper sales declinining while mysterious "other" sales go up to keep circulation even like this NYT data?
http://www.nytco.com/investors-nyt-circulation.html
These are liberals. Many print executives even with degree's and MBA's. These libs are making brilliant decisions:
1). Subscriptions are plummeting; Let's jiggle the circulation/subscription numbers to keep the ad revenues constant. Busted! (ethics?)
2). Subscriptions are plummeting; Begs the question as to WHY? Liberal Answer: Bring back readership by bagging the non-bias angle and increase the 'liberal' stories, copies, and posts with the 'liberal' ideology slant. Brilliant!
With business sense like this, hope they fold.
Has the NY Times or LA Times been implicated in this scandal?
Your assigment, if you choose to accept it, is to search the LA Times data base for all its editorials about the need for corporate reforms and good governance..
Given the spate of accounting irregularities in many areas of economic activity and a seeming willingness on the part of Justice to prosecute, we could see some interesting developments soon.
Well now that Jake Reno is out of DC, there appears to be a new mindset about liberal fraud at corporate levels.
This is probably scratching the surface of this infected crust of a boil.
Gee, why isn't Elliott Spitzer hauling these frauds into court?
The LA Slimes was part of the first expose that I posted about 2-3 weeks ago. The Slimes is owned by the Tribune that is noted in this article.
They had to let over 100 employees go when this stuff floated to the top.
There have been postings in the last year about the NY Slimes with ?'s re their paid circulation. The NY Slimes is required reading at many colleges and universities. So the Slimes gives special discounts to students. Of course if they live outside of NYC, they can't really help local advertisers using the NY Slimes.
The best kept secret of the Rosie fiasco was her lies about paid subscriptions. She committed fraud and should go to jail with Martha. As a result apparently ad $'s across the board to magazines went down.
Are these newspapers based in NY?
However, that is a great question to save when something similiar comes up for the Ny Slimes.
Here is the article/thread that I posted earlier this month about the LA Slimes inflating its subscriptions.
LA Slimes/Tribune stock takes a hit w/less ad $'s
http://www.freerepublic.com/focus/f-news/1149807/posts
Tribune falls after warning, downgrade, (LA Slimes and Chicago Tribune)
CBS.MarketWatch.com. ^ | 8 June 2004 | Russ Britt
Posted on 06/08/2004 8:30:53 AM PDT by Grampa Dave
Tribune falls after warning, downgrade
By Russ Britt, CBS.MarketWatch.com
Last Update: 11:01 AM ET June 8, 2004
LOS ANGELES (CBS.MW) -- Shares of Tribune Co. dropped 4 percent Tuesday in the wake of the newspaper publisher's warning on sales projections and a downgrade from a Wall Street analyst.
Chicago-based Tribune (TRB: news, chart, profile) fell $1.88 to $46.80 after the company said Monday it expects sales growth to be slower than expected within its publishing group and will have to take a $10 million to $15 million charge in the second quarter to make up for it.
That prompted A.G. Edwards analyst Michael Kupinski to downgrade Tribune stock to "hold" from "buy." Kupinski said, however, that Tribune's downside should be "limited."
"In our view, the likely catalyst toward higher stock valuations will be positive earnings surprises and sequential growth in quarterly revenues," Kupinski wrote in a note issued Tuesday. "Patient investors willing to wait an upturn in revenue growth at the company, which appears possible in a favorable economic environment, are encouraged to retain positions."
The publisher of the Los Angeles Times and Chicago Tribune said it will take the charge because it is reducing expense growth from 5.5 percent down to 3 percent. Tribune officials said, however, they still expect to fall within analyst estimates for the quarter.
Tribune is cutting 200 staff positions, undertaking newsprint conservation programs and reducing spending in all departments. Company officials said the growth plans that existed earlier in the year weren't meeting expectations.
"Although help wanted advertising is improving month-over-month, and preprints year-to-date are delivering strong growth, other advertising categories are not meeting the aggressive plans we had for the year," Jack Fuller, president of Tribune Publishing, said in a statement. "The shortfall is limited to a few newspapers, including the Los Angeles Times."
Tribune expects sales growth of roughly 4 percent for the full year.
The company put out its warning as it announced sales were up 3.2 percent for a roughly monthlong period ended May 23.
Russ Britt is the Los Angeles Bureau Chief for CBS.MarketWatch.com.
"Your assigment, if you choose to accept it, is to search the LA Times data base for all its editorials about the need for corporate reforms and good governance.."
One of the nice things about being 65 is when asked to do the impossible. I just smile and say, "No Thank, you!"
Most are part of corporations publicly traded in NYC exchanges, and have been bought and sold based on valuation that are based in large measure on circulation. They have been defrauding investors and advertizers.
Or, look at it this way: Shell's restatement of oil reserves amounts to securities fruad because of the strong tie to valuation. Same with circulation.
Your summary below is excellent. Left wing liberals in charge of companies got a free ride during the Clintoon bubble before it burst in May of 2000.
Anyone who invests in a liberal controlled company deserves what they will get. The arrogance and inability to "play by the rules" and their total lack of integrity makes them very poor business execs.
Your excellent comments repeated again:
"These are liberals. Many print executives even with degree's and MBA's. These libs are making brilliant decisions:
1). Subscriptions are plummeting; Let's jiggle the circulation/subscription numbers to keep the ad revenues constant. Busted! (ethics?)
2). Subscriptions are plummeting; Begs the question as to WHY? Liberal Answer: Bring back readership by bagging the non-bias angle and increase the 'liberal' stories, copies, and posts with the 'liberal' ideology slant. Brilliant!
With business sense like this, hope they fold.
Yes, you are right.
Spitzer went after Mutual Fund Companies based all over America. (Did he whack any NY Fund Companies?)
Someone should contact Spitzer's office about this blatant fraud.
Agreed, the NY Times is left-wing. But both they and the Wall Street Journal did one heck of a job after 9/11, covering the city. And they do a great job of covering basebal & track, two of my favorite sports. (The Wall Street Journal obviously has a better editorial page).
As an aside, the Times (like many newspapers), is in trouble. Primarily because newspapers are a 19th century phenomenon.. The internet is marginalizing newspapers, much like the auto marginalized trains. Even conservative papers like the Wall Street Journal are feeling the pinch.
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