Stunning losses at MG, Gannett

Ouch!

NEW YORK (Reuters) - Media General Inc (MEG.N) reported a wider net loss on Friday and an 18 percent drop in revenue because of falling newspaper advertising sales, sending its shares down 12 percent.

The publisher of newspapers such as the Richmond Times-Dispatch and Tampa Tribune said its first-quarter net loss was $21.3 million, or 96 cents a share, compared with a loss of $20.3 million, or 92 cents a share, a year earlier. Revenue fell 18 percent to $159.5 million.

Publishing revenue fell on a 25 percent drop in ad revenue. Lower automotive ad spending contributed to a 19 percent drop in revenue at Media General's television stations, a trend that likely will show up at other U.S. TV station owners such as Meredith Corp (MDP.N) and News Corp (NWSA.O).

Media General, like other U.S. newspaper publishers, is grappling with weaker ad sales, especially in its classified ad business, as more people seek news online for free.

The financial crisis in the past year has accelerated an erosion of real estate, job and automotive ad sales.

The Richmond, Virginia-based Media General's results come a day after USA Today Publisher Gannett Co Inc (GCI.N) reported a 60 percent drop in its quarterly profit because of ad revenue declines.

*********************************

E.C. :)