More cutbacks, layoffs for Gannett

Dateline: Tue 31 Jan 2012

http://www.marketwatch.com/story/gannett-reaffirms-go-digital-or-die-2012-01-30?d=nbst

From Marketwatch:

"Gannett reaffirms go-digital-or-die

"A 33 percent decline in profit and a 7 percent fall in ad revenue"

"That’s the central message from Gannett Co.’s fourth-quarter earnings statement on Monday morning.(Jan. 30, 2012)

"Gannett posted dismal earnings for its old-media holdings Monday morning, and the company’s stock tumbled on the news. Gannett reported a 33% drop in quarterly profits and a 7% decline in ad revenue in the newspaper division from the year-before span. Read Wall Street Journal story on Gannett’s results.

 

"If any media executives had hoped to see signs of a comeback, Gannett /quotes/zigman/227199/quotes/nls/gci GCI +0.02%  , the publisher of USA Today and dozens of smaller newspapers, threw cold water on that notion.

"The snag for the newspaper industry is that Internet gains aren’t quite enough to compensate for the revenue weakness at the flagship newspaper brand.

"These moves have helped Gannett produce admirable results, though critics will say the advances come as a result of what The Wall Street Journal called 'aggressive cost cutting, including layoffs and furloughs.'”

Right on.

Former Indy Star IT employee Mike Kent keeps an eye out for this sort of news; he sent the Marketwatch link this way.

His comments: "Looks like more downsizing and increased digital focus for Gannett...There's no question Gannett will get smaller, and the big question to me is what do they do with the practically new multimillion-dollar publishing plants in Indy, Louisville, Detroit and even Lafayette? They can always advance the tax depreciation, but that's not easy to do if you don't have the income to depreciate against."

The Annenberg Center for the Digital Future at University of Southern California in January came out with a report that forecasts print newspapers will be gone in five years, with the probable exceptions of four national newspapers (USA Today, Wall Street Journal, New York Times and The Washington Post) and smaller dailies or weekly publications.

The future is grim. We all knew that. These numbers simply reaffirm what we all know is coming....more cutbacks and layoffs in the industry.

And more profits for Gannett, or, more accurately, its executives and Wall Street handlers.

 

 

Comments

Tell The Truth [Member] said:

Stockholders need to rise up.

Or else it's gone.

The whole product--flushed.

I think there's a strong market for a good print product. It could be profitable.

But not when you bleed off the top 10-15% for corporate stupidity. And not when that stupidity continues to cut the wrong things.

That corporate stupidity is cherry-picking the corporate suite. The good art is already stolen. Now they're going for the designer furniture.

Corporate jets are next. When the CEO flies commercial, sell the farm. The end is near.



2012-01-31 19:18:42

hendy [Member] said:

It's unlikely that they'll summon the necessary wisdom to make the conversion to online media. They soooo completely suck at it now.

Their RSS feeds have been whack, lots of postings of pages with no content, and it's obvious that their CMS system needs to be buried-- it's already post-mortem.

But they'll go blithely on, ever-proud, until there is no denial, then there'll still be denial. And now that they can successfully disband the Guild-- Right to Work! they can get the cheapest labor possible to run what was once a great, if controversial, paper.

Half a league, half a league on. Good night.

2012-02-01 19:16:27

indykjsharp [unverified] said:

The mini-paper we received today resembles nothing that it used to be. And the fact that this post has only two comments means nobody gives a shit anymore. All those Kindle Fires and free news websites have killed the newspaper. Good news is, got a call at my day job from a former Star reporter wanting a quote on our recent news for another venue. Rock on.

2012-02-02 19:55:31

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