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.