http://www.reuters.com/newsArticle.jhtml?type=industryNews&storyID=5899465NEW YORK (Reuters) - Another case of inflated circulation at a major U.S. newspaper is sparking fears that a scandal over the accuracy of circulation figures could cut even deeper into the newspaper industry.
Belo Corp. disclosed late Thursday that an internal investigation had uncovered inflated circulation at its Dallas Morning News, sparking an 8.6 percent decline in its stock price on Friday. The company is the third big U.S. newspaper publisher to announce circulation misstatements recently.
"The Belo circulation news is going to add fears that this circulation overstatement disease may not be cured yet in the industry," said Douglas Arthur, an analyst at Morgan Stanley who tracks the newspaper sector.
In June, Tribune Co. said it uncovered inflated numbers at Long Island, New York-based Newsday and Spanish language paper Hoy, while Hollinger International Inc. said its Chicago Sun-Times overstated circulation.
Analyst Edward Atorino, of Fulcrum Global Partners, said in a research note that the circulation problems "may cast a pall over newspaper publishing stocks especially in the short-run" and that if the issue "lingers, or worsens as seems likely, it could undermine investors' confidence in the quality of earnings going forward and cloud the 2005 outlook."
...more...
too late to be LBN, but too good not to post :evilgrin:
Printer-friendly format
Email this thread to a friend
Bookmark this thread
(1000+ posts)
Send PM |
Profile |
Ignore
