"State of the News" Review
Shows Record Profits for 1997

by Kevin Collison

When it comes to profits at The Buffalo News, no year has ever been better than 1997.

With newsprint costs dropping by $3 million and total expenses falling by four percent, the News increased its profits last year by 10. 8 percent to an all-time high of $32. 67 million. All indications are that 1997 was among the paper's most profitable years ever.

Based operating profits of $55. 4 million and total revenues of $155.5 million, the paper earned 35.6 cents in operating profits for every $1 it received in revenue. Over the last 10 years, only in 1994 were they able to squeeze as much in operating profits out of the revenue stream.

Still, Treasurer and Controller Rod Layton told employees during the state of the News review in April that all is not rosy. Advertising and circulation revenues were flat last year. ROP ad lineage was at an all-time low. Pre-print volume is up, but revenue received from preprints is down because competition from other delivery

firms has forced the News to lower its rates, he said.

Circulation saw daily sales fall by 6.9 percent to 272,250, while Sunday sales are off 4.1 percent to 352,400.

Expansions in sports coverage and a new home and garden section are among the changes the newsroom will experience in 1998, Executive Editor and Senior Vice President Murray B. Light told employees.

On an issue of new hires in Editorial, Light replied "a couple of more part timers" may come on board and the sports department can expect more "reportorial help."

Publisher and President Stanford Lipsey said the News continues to monitor developments in the printing press industry but so far has not seen the technology it believes is worth purchasing to replace its aging presses.

Lipsey also said the paper is on "an accelerated track of being forced to figure out what to do" when it comes to the News expanding its presence on the Internet.