Skip to comments.Gannett Profit Falls 33% on Lower Ad Sales (Dinosaur Media DeathWatch™)
Posted on 01/30/2012 2:28:01 PM PST by abb
Gannett Co. reported a 33% drop in fourth-quarter profit as persistent advertising declines at its newspapers and lower television revenues more than offset growth in the digital businesses.
The McLean, Va., publisher of more than 80 daily U.S. papers, including USA Today, said ad revenue in its newspaper segment decrease 7.1% from the year-earlier quarter. Coming after an 8.5% year-over-year drop in the third quarter, the results capped a difficult second half of a year when many publishers expected advertising deterioration to level off.
Executives said advertising got a boost in November from Black Friday and Cyber Monday but the newspaper segment was subsequently hit hard because retailers reported "the largest post-Thanksgiving, pre-Christmas decrease in spending in some time," Gannett chief executive Gracia Martore said in an earnings call.
Ms. Martore said the company is "getting off to a very solid start in the first quarter," though Gannett executives said it's too early to provide an outlook for newspaper advertising in the first quarter.
Revenue from the broadcast division slid 14% due to lower political advertising. Gannett said the year-earlier quarter included $52.4 million in political advertising.
Gannett, like a lot of newspaper publishers, has shifted its focus to digital businesses to adapt to changing consumer behavior and reduce its exposure to the deteriorating market for print advertising. Revenue in the digital segment increased 9.4% to $181.5 million in the fourth quarter due primarily to growth at the CareerBuilder website, where revenue increased about 15%.
However, digital revenue isn't growing quickly enough to make up for erosion at the newspapers, which still account for about two thirds of the company's total revenue.
Even amid the steep revenue declines of recent years, Gannett has managed to produce strong profits through aggressive cost cutting, including layoffs and furloughs.
(Excerpt) Read more at online.wsj.com ...
USA Today...only time I ever see one is when it’s shoved under my door at the Hampton Inn. It looks the same as it did in 1982 and it’s about as substantive as an Egg McMuffin. I always wondered how those guys stayed in business.
The singer in my band works as a printer at a newspaper. It’s a non-union shop and has thus survived so far.
Quick. Raise your prices!
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Times not getting much better for nation’s paper of record
and with P&G seriously considering cutting back, the Sunday paper might shrink... heh
Unfortunately there is not enough time for some conservative organization to buy a majority share in one of these dying news organizations to save the country from making the same stupid mistake in electing a president.
Even FOX thanks to minority ownership by some sand monkey prince and the extortion by George Soros has moved into the left of center column.
Given how poorly Air American has done compared to conservative talk radio maybe a visionary with money will see there is a real need for something other than a bunch of house organs for the Marxist/Communist party (aka Progressive Dems and GOP).
I used to subscribe to the local paper, but found the content so thin it wasn't worth the price and it just filled my recycling bin. I once told the local editor that when I subscribed, every day I would read the front page, the editorials and the comics and most days could not see much difference.
The local daily closest to me - The (Monroe, LA) News-Star - is so small on Mondays that when rolled up is about the diameter of your thumb.
rot in hell
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What a coincidence.
I think Drudge’s profit is down about 30%.
Maybe he can use a smaller font and call his propaganda sheet the “Dinosaur Report”.
Or maybe: RINOREPORT.