Newspaper revenues on the rise again

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Largely because advertising sales grew 3.8% to $3.3 billion, the newspaper industry's revenues are on the rise again. But revenues are still below 2004 levels: the industry has not regained the ground lost in 2009. In 2010, newspaper publishers' operating revenues rose 1.4% to $5.0 billion, with two-thirds coming from advertising sales.

Circulation sales, which increased 1.0% from the previous year, brought in 18.0% of newspapers' revenues. Distribution of flyers and inserts—the only type of revenue that has not decreased since 2004—accounted for 8.3%.

The industry's profit margin returned to historic levels in 2010, at 12.3%. Ontario publishers led this advance, with the largest gain in operating revenues.

Labour costs, which rose 1.0% in 2010, continue to be newspapers' largest cost item at 40.1% of the industry's operating expenses, followed by the cost of goods sold (13.9%); delivery, warehousing, postage and courier services (13.2%) and contract work (11.5%).

Chart 8.3 Newspaper publishers' operating revenue, by region, 2010
View data source for chart 8.3

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