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Gannett’s Very Bad Second Quarter

Gannett recorded a dismal second quarter financially, the company reported Thursday – important revenues sources down, costs up and a loss of $54 million on revenues of $749 million.

Among the bad news:

* Digital advertising fell below expectations

* Both print circulation and print advertising were off

* On the cost side, labor shortages and expenses are rising

* Inflationary pressures, economic uncertainty and a possible recession

* Gannett stock, already down roughly 45% for the year, fell another 28.5% in midmorning trading, indicating Wall Street had not expected such bad results

Rick Edmonds at Poynter reports on Gannett’s Second Quarter results,
which include the note that…

Strong cost reduction moves are on the way. Media division head Maribel Perez Wadsworth, in a note to staff, warned of impending layoffs. “In the coming days,” she wrote, “we will … be making necessary but painful reductions to staffing, eliminating some open positions and roles that will impact valued colleagues.”

The company publishes USA Today and more than 200 regional dailies.

 

Community Comments

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#1 Mike Peterson
August/5/2022
@ 3:40 am

“Valued colleagues.” tee hee

#2 Ignatz
August/5/2022
@ 6:13 am

In my area, Gannett has gotten less local. Which strikes me as really stupid, since one thing you don’t get on the internet is information about your own town and your own neighborhood.

As for advertising, how about the website having an actual advertising section that people can intentionally go to when they WANT to see advertising, like newspapers had? Instead of popping things up in your face when you’re trying to read?

And it’s really stupid to demand money to look at a website when there are a million other websites. People just won’t look at yours.

#3 Ron Brown
August/5/2022
@ 9:32 pm

The way Gannett treats their cartoonists, like they did Pulitzer Prize winner Steve Benson at the AZ Republic for example, are horrific. Benson was a very beloved figure at the paper for over 30 years and one day they escort him out like he’s a trespasser. No loyalty, just kicked to the curb with five minutes notice. After 30 years???!! Shame on them! And now this news comes on the heels of Gannett cutting most cartoons out of their papers all together??!

Gannett’s demise cannot come soon enough as far I as I’m concerned. They deserve everything that happens to them.

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