Newspapers raise advertising rates

New Zealand newspaper groups have locked in advertising rate increases for the new financial year, according to broker Merrill Lynch.

APN News & Media's New Zealand Herald has increased classified ad rates 4.5 per cent.

Merrill Lynch forecasts 5 per cent revenue growth for the Herald in 2006 which would imply "very limited volume growth, which looks sensible in our view given recent softness in volumes in the Auckland market for the Herald".

Fairfax's Christchurch Press is expected to raise rates by an average of 3 per cent.

- NZPA