Date

Mon - 20.11.2017


Gannett

Is paid content worth more than newspapers are currently selling it for? Several US publishers who spoke at a Newspaper Association of America press conference seem to think so, Poynter reported.

Gannett President of US Publishing Bob Dickey said at the conference that he projects Gannett’s paid digital newspaper subscriptions will be worth $100 million in 2013, according to Poynter.

Gannett conducted marketing research that led the company to decide in favor of paywalls, which were implemented at 80 Gannett papers this year, the article said. According to Dickey’s description of the research finding, “Readers value our content at a higher price than they pay,” the article said.

Dickey also said that Gannett may need to enhance its digital content in order to sustain paid subscriptions, which could mean the hiring of additional "content creators," the article said.

Author

Gianna Walton

Date

2012-04-10 12:45

Gannett Co. announced Friday that its second-quarter profit up more than double, thanks to the bounce-back of broadcast revenue, tax gain as well as the ease of print ad downturn. However, its share tumbled as much as 11 percent soon after the report release due to unexpected declined in revenue, Reuters reported.

Gannett's profit in the second quarter reached $195.5 million, or 81 cents per share, up from $70.5 million, or 30 cents per share, a year earlier, which exceeded Wall Street's forecasts. However, its revenue dropped by about 1.5 percent to $1.37 billion, with publishing revenue down 6 percent. It failed to meet analyst's expectation of $1.40 billion, according to Thomson Reuters I/B/E/S.

Regarding the stock decline, "Part of it is the perception of a revenue miss despite that earnings were ahead of consensus," according to Barry Lucas, senior vice president of research at Gabelli & Co.

Gannett's broadcast revenue was up 20 percent, which helped compensate the 6-percent decline in publishing. In June, Gannett's print advertising only slipped 4 percent, the smallest drop since early 2007, The Associated Press reported.

Author

Erina Lin

Date

2010-07-16 23:06

Gannett Co. Monday announced that its second-quarter earnings should meet the high end of Wall Street expectations as advertising revenues increase, especially on TV and online, The Associated Press reported.

However, its newspaper unit has still suffered from the recession. According to Chief Financial Officer Gracia Martore, another quarter of declining revenue year-over-year is expected, but with a smaller decline.

Martore added that publishing ad revenue, which still contributes over half of Gannett's overall revenue, "will be down on a percentage basis in the low to mid-single digits," compared to an 8 percent decline in the previous quarter and an 18 percent drop in the fourth quarter of 2009, according to the AP article posted on Google News.

Gannett's TV and digital businesses are bouncing back from the recession. Broadcast ad revenue should gain 20 percent or more year-over-year, the second increase in a row. Digital revenue is expected to grow in the mid-single digits.

Martore also said that most analysts' estimated Gannett's earnings per share in the second quarter between 47 cents and 58 cents, Media Post reported.

Author

Erina Lin

Date

2010-06-10 01:35

Gannett Co.'s USA Today will impose an unpaid leave for about 1,500 employees before July, in order to reduce cost and counter advertising and circulation sales downturn, according to a memo to staff, Bloomberg reported.

According to the publisher, David Hunke, in the memo, a pay halt started in February 2009 will be extended by at least 90 days.

"National advertising revenues in general were still down from the previous year as were paid advertising pages at USA Today. Circulation sales continued to be lower in the fourth quarter," added Hunke.

Gannett announced in December that most employees at local papers would be required to take five-day unpaid leave this quarter, originally excluding these at USA Today. However, most USA Today staff had to take two-week unpaid leave last year as part of a plan mandated by Gannett.

The memo was confirmed by Ed Cassidy, a spokesman for USA Today, Bloomberg reported.

"The title's nearly 1,500 employees must take a one-week furlough between Feb. 28 and July 3," Cassidy said Thursday, according to an Associated Press article posted on W Top.

Author

Erina Lin

Date

2010-02-12 23:39

Gannett Co.'s (GCI) profit plunged 53 percent in the third quarter due to an advertising slump. However, thanks to cost cuts, the publisher's results outperformed expectations, Dow Jones reported.

Gannett said in September it expected the third-quarter profit to greatly surpass Wall Street's forecasts, which brought in hopes that the toughest times for publishers and broadcasters may be over.

However, some still concern remains about the company's US$3.5 billion debt and whether it can sustain a rebound through cost cuts. The publisher's third-quarter operating expenses dropped 14 percent through job cuts, salary reductions and other measures, but publishing ad revenue declined 28 percent, according to the article, posted by the Wall Street Journal.

"Even though they were still down substantially, the ad revenue trend is improving, and the third-quarter performance wasn't as bad as I was expecting. It's continually impressive that Gannett is able to keep cutting back its cost base," Barrington Research analyst James Goss, told Dow Jones.

Gannett's shares, up more than five-fold in the past seven months, increased 1.6 percent to $13.21.

Author

Erina Lin

Date

2009-10-19 17:04

Regional newspaper publisher Newsquest has posted a 36.9 percent year-on-year drop in ad revenue for the months of April, May, and June Press Gazette reported.

Gracia Martore, chief financial officer for Gannett, Newsquest's parent company, seemed neither surprised nor disheartened by the figures saying, "we continue to position the company for the eventual rebound in the economy and the evolving media landscape as we navigate through this unprecedented economic storm."

Newsquest saw drops in advertising mostly in classified, car and recruitment areas. Newsquest publishes 17 titles in Britain, making it the second largest regional newspaper publisher.

Author

Leah McBride Mensching

Date

2009-07-17 15:52

Gannett Co., Inc. has posted second quarter profits that have startled many industry analysts, Bloomberg reported today. While the company saw its earnings drop to 46 cents per share, the figures are better than analysts expected, as many predicted a decrease in share value to approximately 38 cents.

The better-than-expected earnings are credited to a series of cutbacks made by the publisher, including enforced furloughs, reductions in the price of newsprint, various salary cuts and the closing down of its Tucson Citizen title.

Gannett's publishing unit, which includes flagship national title USA Today, saw advertising sales drop by 32 percent, from US$1.11 billion to $753.1 million, according to Bloomberg. Revenue at its broadcast division, meanwhile, was down 21 percent, from $192.6 million to $153 million. Gannett owns 23 TV stations in the United States.

In addition to previous cost cutting through layoffs, the company announced last month it would cut 1,400 jobs from its workforce of 41,500 people, the Wall Street Journal reported. Gannett owns more than 80 daily newspapers, and in 2008 cut 10 percent of its employees.

Gracia Martore, chief financial officer at Gannett, told the WSJ that "demand seems to be firming up a bit in some categories and in some geographic locations."

Author

Leah McBride Mensching

Date

2009-07-15 17:32

In a Nieman Journalism Lab article, Martin Langeveld recently addressed the changing business model of newspapers, and the role that a "restructuring event," or bankruptcy, plays in the transition from the old model to a new one.

Langeveld cites characteristics of a successful business plan for the modern newspaper, such as reduced printing and delivery schedules, and posits that such downsizing and cuts cannot "carry the company's legacy debt load," and thus require chapter 11 to allow for the necessary reorganisation of the paper.

Langeveld views bankruptcy in a different light. According to Langeveld, filing for chapter 11 "may be closer to sustainable business models than those who are still paying their bankers."

Recently, several major newspaper firms have been reported to be near defaulting on their loans. Gannett, the largest U.S. newspaper publisher, has been lowered to junk-bond status by credit raters while Tribune Co. is filing for bankruptcy and McClatchy's failure to exchange enough debt has left them in default.

Author

Leah McBride Mensching

Date

2009-07-02 20:49

Gannett Co. Inc has proposed the lay off of more than 1,000 employees in response to the ongoing revenue declines, the Washington Business Journal reported Tuesday night.

The cuts will affect the company's community publishing division and will not reach national publication USA Today.

The first economic quarter saw Gannett's total revenue decline 18 percent, finishing at US$1.38 billion. Advertising revenue was the major loser, down 34 percent to $723 million while circulation revenue fell 3.1 percent to $300 million. This left net income for Gannett at $77.4 million down 60 percent.

Gannett has already imposed cost cutting measures on its employees, who earlier in the year were required to take unpaid furloughs and others temporary salary reductions.

The biggest move involved the closure of the Tuscon Citizen, Arizona's oldest continually running newspaper.

Author

Leah McBride Mensching

Date

2009-07-01 12:09

A recent report posted on Gannet's blog made reference to a memo sent out by Gannett's CFO Gracia Martore in which 4,500 layoffs of newspaper staffers are predicted the Portland Business Journal reported.

According to the blog, Gannett employees should not expect any more furloughs to be imposed this year. However, Gannett's 41,000 employees of their collected newspaper and television stations can only be slightly relieved by this news, given that their industry has already suffered slews of layoffs and salary cuts.

While Gannett officials have made no further comment on the pending cuts, the blog post said that they should be effective July 8.

Author

Leah McBride Mensching

Date

2009-06-23 10:47

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