JP Morgan’s negative view of newspaper classifieds

JP Morgan published a report concerning the state of the newspaper. In this report the analyst Alexi Quadrani posts the classified issue as one of the central problem of today’s print newspapers:

“The classified revenue plunge is one of the more worrisome aspects, since it represents about one-third of revenue and is the most profitable of advertising categories. Though the comparisons should be easing, at least in theory, Quadrani and her team estimate the classified revenue will continue to suffer double-digit decreases throughout 2008.”

Further challenges are the strong cutback on expenses to reach profit yields last year but not having this opportunity in 2008 anymore. In this article she also rates different newspaper groups: “JP Morgan Issues ‘Negative’ View of Newspapers.”

Tags: analysis, JP Morgan, market, outlook, perspective