Apple Daily lays off staff as slump hits

The newspaper has let go of general manager Peter Hui, business director Thomson Lau, and sales directors Johny Lee and Ken Tsui.

A source confirmed that the publication's December ad sales figures were its "worst ever" According to AdMango, newspaper sentiment across the board was weak in December. Apple's sales dropped to HK$89.2 million (US$11.4 million) from over $100 million one year earlier. Its key rival - Oriental Daily News - fell from $165 million in December 2005 to $144 million this year. "It's difficult at this point in time to imagine that the market is going to get much better for newspapers," said a source, who noted that readerhip is dropping and freesheets were putting pressure on rates.

"Newspapers are doing so-so at seven per cent growth," said Carat Hong Kong MD Stewart Li. "Apple Daily and other key newspapers are facing keen competition from free tabloids such as Metro and Headlines."

Li added that since Apple has not been supported by blue-chip telecom, property and retail clients, its ability to boost adsales in a tough market is limited.

Said Mabel Leung, managing director, Starcom Worldwide, Hong Kong: "We do see advertisers diversifying their spend to more media over the last few years. The availability and popularity of free newspapers have affected not only other newspaper titles but also magazines in terms of share of advertisers' pocket."

"We believe smaller titles with less distinctive marketing positioning and profile would probably suffer more."

Overall, AdMango figures disclosed a 7.6 per cent growth in measured media spend for 2006, well below the 10 per cent forecast.

Apple has responded to the layoffs by promoting staff to assume new positions. Previous marketing director Andrew Cheng becomes GM, while Anna Kat, who formerly headed advertising at Easyfinder, has replaced Lau.