The Week: City News - Newsquest hit by ad slump

Newsquest saw revenue from property ads fall by around 60 per cent, year on year, in the fourth quarter of 2008.

Its US parent company, Gannett, reported year-on-year revenue drops of 57.7 per cent from property ads, 35.2 per cent from employment ads and 31.2 per cent from car ads. In total, revenue from UK classified advertising fell by 35.3 per cent. In response, Gannett invested $56 million to restructure and make efficiencies in the US and the UK. In the UK, this involved closing 11 newspapers in the north of England, and announcing redundancies and pay freezes.