Tuesday, August 16, 2022

Gannett Going Broke?

 Is Gannett's stock price racing to zero? Gannett posted disastrous earnings recently.  The ever-shrinking media behemoth reported a $54 million loss in the second quarter as total revenue shrank 7% from a year earlier.  The market punished Gannett for the bad news as its stock price fell to $2.30 per share although it recovered to a promising $2.50 per share today.  The company issued the following statement:



“Our second quarter results and updated full year outlook reflect industry-wide headwinds in digital advertising as well as rising costs and pressures on consumers which are impacting our near-term performance. During the quarter we experienced a rapidly tightening macroeconomic environment caused by rising inflation coupled with distribution labor shortages and price sensitive consumers which has affected our traditional print business. Despite these challenges, our investments in our key operating pillars are yielding impressive results. We continue to experience considerable progress in our digital transformation and finished the quarter with 1.87 million digital paid subscribers, growing 35% year-over-year. In addition, our Digital Marketing Solutions business generated its highest quarter of core platform revenue of $116 million, and its highest quarter of core platform customers of over 16 thousand, while maintaining double-digit Adjusted EBITDA margins,” said Michael Reed, Gannett Chairman and Chief Executive Officer.

“Our revised guidance reflects our outlook based on current economic conditions. We are not satisfied with our overall performance in the second quarter and have quickly responded to this rapidly deteriorating economic environment by implementing a significant cost reduction program that we believe will better position the Company to realize its long-term growth goals, with a lower and more variable cost structure. The changes and reductions to our cost structure are focused primarily on our legacy print business."

"Along with strategic reductions to our cost structure, we have identified additional non-strategic and real estate assets to bring to market. We remain focused on repaying $150 million to $200 million of debt in 2022."

"While the current operating environment is challenging, we believe we can achieve our longer-term transformational digital growth goals. This current downturn is pulling forward print revenue losses anticipated in future periods, and more quickly requiring changes to our operations and cost structure which we believe will benefit us over time."

"We believe our subscription-led business model, robust balance sheet, and experienced management team put us in a solid position to weather this economic downturn and deliver long-term value to shareholders."
However, the bad news wasn't necessarily bad news for everyone.  The New Jersey Globe reported: 

Gannett CEO Michael Reed, preparing to launch a new round of layoffs after the nation’s largest newspaper chain lost $54 million during the second quarter of this year, has increased his personal stake in the company.

Reed spent $1.22 million to buy 500,000 shares Gannett stock on Monday, raising his own holdings in the struggling media empire to 1,826,335 shares, according to filings with the Securities and Exchange Commission.

He paid $2.44 per share just says after his announcement of a 7% drop in revenue and huge losses sent Gannett stock in to a tailspin.  Stock prices dropped 28% after Reed announced Gannett’s quarterly earnings last Thursday.  The stock is down 57 % so far in 2022, and 85% over the last four years.... Article.

Is there anything left to cut at the Clarion-Ledger



45 comments:

Anonymous said...

Get woke, go broke.
It will probably happen to you too, stankfish

Anonymous said...

They made their bed and can now sleep in it.

Anonymous said...

How they not go broke? Case study of how to ruin a company. Fire the good people, charge higher prices, repeat.

Anonymous said...

Oh look, nobody wants to read State propaganda.

Anonymous said...

Gannet going broke is the best thing for local newsprint. Let folks who actually care about the community own and operate local newspapers. No lone in any locality cares about warmed over USA Today corporate crap.

Anonymous said...

Every day I check the Clarion Ledger on line and find nothing much of interest other than the obituaries. One thing that pops up daily is the C-L committment to "diversity and inclusion "
Unfortunately few of those "diverse " folks ( also known as Blacks ) buy the paper or purchase ads.

Anonymous said...

Todays front page headlines “Monarch butterflies labeled endangered” really makes you want to subscribe. Butterflies have taken the headlines away from unusable city water, and the highest murder rate in the USA.

Anonymous said...

need more civil rights stories from the 60s-

Anonymous said...

Didn't realize they were still in business.

Anonymous said...

The CL publishes free driveway litter with auxiliary jps band boosters' picnic highlights and Dollar General type ads, often puts 3 copies in each bag, perhaps to triple enhance the circulation-based ad rates?

Anonymous said...

Good. Fucking. Riddance.

Anonymous said...

When I moved here in 2000, the CL was an actual newspaper worthy of a state capitol.

Now it’s worse than the free papers you can get at the gas station.

Anonymous said...

Shut them down and move them out. They are useless.

Anonymous said...

Let folks who actually care about the community own and operate local newspapers.

Who would that be?

Bill Dees said...

@11:25 AM, Mississippi Today

Anonymous said...

Well have no fear. Sam Hall who helped destroy the Clarion Ledger is doing the same thing with the Tupelo paper. Three weeks ago he fired John Pitts his longtime sports editor and others at the paper. It's sinking fast.

Anonymous said...

If there is a demand for something they would not go broke. If no one wants to read what they print they should go out of business. Simple.

Anonymous said...

@12:04pm Have to agree. The Daily Journal has gone full blown leftist...S.E. Culp from CNN has a column now.

Anonymous said...

This is a great example of "get woke, go broke."

Anonymous said...

Nobody who can think for themselves wants to read their woke left wing lies, much less pay to read them. Good riddance!

Anonymous said...

Among other cutbacks, I'm guessing the CL will stop printing a couple more days a week, in addition to not printing on Saturdays & most holidays now. It won't stop pandering to Deion Sanders - the half page of color photos of his birthday party recently is proof. The display ran in the news section when the paper doesn't try very hard to cover crime & water problems.

Anonymous said...

Blame the internet first and smartphones second.

The destruction of the newspaper industry starts with craigslist and eBay and later companies like Zillow and all the others destroying the hundreds of years old pattern of buying and reading classified ads in newspapers to sell your stuff and find other people's stuff you wanted to buy.

Does anyone remember laughter? Whoops. Does anyone remember when you used to buy and sell tickets of all sorts in the newpaer classifieds?

Does anyone remember reading the newspaper obits every day to see if you had a funeral to attend? Now there is facebook.

If these companies hadn't existed some other ones would have taken advantage of the opportunity and captured these markets.

The attempt to blame the newspaper industries downfall on wokeness is laughably predictable for where you see it, why not blame it on miscegenation and dancing to Elvis music? The newspaper industry was the walking dead before wokeness was anything but what happened after your alarm goes off when you are asleep.

TLDR: No one reads anything but a screen now.

Anonymous said...

Bill Dees, reading their 990 it is clear that MT is in worse financial shape than the C-L. As for caring about the community, Jackson Jambalaya provides more overall community balance in its reporting than does MT.

Anonymous said...

They became a racist newspaper. Everyday article about some victim and lies about what is hipping in DC. The only part worth reading is sports and the funny papers. Otherwise just woke garbage. Not letters to the editors because you might disagree with the liberal crap the AP and USA Today put up as news.

Anonymous said...

imagine relying on the clarion ledger for information

Anonymous said...

12:33 The daily rag is going to pander to somebody. Who else do you suggest? Tater Reeves? Happy b'day Coach!

Anonymous said...

@11:50

Mississippi Today is somewhere left of Gannett but you probably already knew that.

Anonymous said...

12:38, wrong, there are plenty of thriving newspapers that adapted and create good content. The opposite strategy of the CL.

Anonymous said...

Good riddance. I'd still be subscribing if they printed anything worth reading and if they could deliver. But they haven't been able to do either for decades.

Anonymous said...

F ‘em!

Anonymous said...

My parrots love the Gannett newspapers.

Anonymous said...

The propaganda machine, of which Gannett is a part, doesn't heed the bottom line like normal businesses. They aren't producing to make money. Their only purpose is to trumpet the will of their masters.

They act as the agents of the nameless, faceless demigods to direct the flow of societal evolution. They keep the masses in a constant state of chaos and confusion, with crises after crises, from which they bring the desired order.

Their pattern is well-known and has been pointed out by many writers and commentators over the years. Manufacture a problem, broadcast that problem from every available source of communication, after sufficient time present the solution that will be used to produce the desired outcome.

Observe for yourself. Don't take my word. Look for the pattern.

Anonymous said...

The president of the company just bought half a million shares of the company. Funny how I don't think he will be investigated for insider trading. He might get a divorce though if he is married.

Anonymous said...

I lived in the Sip for 22 year and watched the demise of the Cl. I knew it would happen because Gannett never had A COMMITMENT TO LOCAL NEWS, the local papers here in the land of milk and honey, "LOUISIANA" cover national, regional, and local news and events. It always includes diversity and cultural issues daily. Its a diverse state with a blend of cultures where people live and let live. The police reports and crime blotters aren't overlooked but they are not dwell on either.
The news is generally positive and informative, that sells papers, Gannett lost site of that. Its a state wide newspaper owned by locals I guess that helps too.

Anonymous said...

It takes more than a commitment to local news. It takes an understanding of the *paying* customer base and efforts to not attack them at every turn with each daily edition.

Anonymous said...

I miss orley, Bobby and to some small degree,Rick

Anonymous said...

The last time I trusted the news it was with Huey Lewis.

Anonymous said...

Are there any newspapers making a profit in Mississippi?

Anonymous said...

In todays Internet world you have to have exceptional local and regional coverage. Talking about the good does sell more papers. Sports have to be covered in depth, that means everything from the bowling team to the football team most schools send out press releases even down to some high schools, all you have to do is print them. 100s of sites that cover world and national news. AP is still a decent source for that and they are available to everyone you can almost read as it’s written, who waits for it to be printed in a paper ?

PittPanther - Defending ACC Champs said...

Moved to Charleston, a city with a thriving and readable newspaper. I had forgotten how fun and exciting it was to get the Sunday paper, and read great articles about local issues.
Laughing at all the dopes riding the Jackson train into the dirt.

Anonymous said...

60 Minutes had a recent segment of the demise of newspapers in America.

Hedge Funds have bought and stripped them of all assets. It was eye-opening.

Anonymous said...

A good newspaper requires good reporters. Hiring good reporters requires a talent pool. Jackson does not have the talent. Sad but true.

The Dayz of Jack Sunn said...

"The ever-shrinking media behemoth reported a $54 million loss..."

Here, KF...I fixed it for ya:

"The ever-shrieking media behemoth reported a $54 million loss..."

Anonymous said...

Did the Clarion-Error pay Orley Hood to do nothing but sit around and write a column twice a week? Or did he do anything else like freshen up the men’s room or throw out the half-used Sweet ‘n’ Lo packets around the coffeemaker?

Anonymous said...

I can vouch for the corporate state of mind. The company I worked for "absorbed" a company in the same market. The absorbed company was millions in debt but the owner was fishing buddy of our CEO. Soon after the merger, the employees of said merged company were being elevated to managerial positions. Most of the original officers were phased out and now it is being run in the ground by incompetent managers. Their stock price has plummeted as well and equipment is idled, but the layoffs continue as bad decisions are the order of the day. "Protect our salaries and bonuses" is their motto!!! Same is true for the liberals at Gannett.


Recent Comments

Search Jackson Jambalaya

Subscribe to JJ's Youtube channel

Archives

Trollfest '09

Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.

Wrestling returns, except this time it will be a Battle Royal with Othor Cain, Ben Allen, Kim Wade, Haley Fisackerly, Alan Lange, and “Big Cat” Donna Ladd all in the ring at the same time. The Battle Royal will be in a steel cage, no time limit, no referee, and the losers must leave town. Marshand Crisler will be the honorary referee (as it gives him a title without actually having to do anything).


Meet KIM Waaaaaade at the Entergy Tent. For five pesos, Kim will sell you a chance to win a deed to a crack house on Ridgeway Street stuffed in the Howard Industries pinata. Don't worry if the pinata is beaten to shreds, as Mr. Wade has Jose, Emmanuel, and Carlos, all illegal immigrants, available as replacements for the it. Upon leaving the Entergy tent, fig leaves will be available in case Entergy literally takes everything you have as part of its Trollfest ticket price adjustment charge.

Donna Ladd of The Jackson Free Press will give several classes on learning how to write. Smearing, writing without factchecking, and reporting only one side of a story will be covered. A donation to pay their taxes will be accepted and she will be signing copies of their former federal tax liens. Ms. Ladd will give a dramatic reading of her two award-winning essays (They received The Jackson Free Press "Best Of" awards.) "Why everything is always about me" and "Why I cover murders better than anyone else in Jackson".

In the spirit of helping those who are less fortunate, Trollfest '09 adopts a cause for which a portion of the proceeds and donations will be donated: Keeping Frank Melton in his home. The “Keep Frank Melton From Being Homeless” booth will sell chances for five dollars to pin the tail on the jackass. John Reeves has graciously volunteered to be the jackass for this honorable excursion into saving Frank's ass. What's an ass between two friends after all? If Mr. Reeves is unable to um, perform, Speaker Billy McCoy has also volunteered as when the word “jackass” was mentioned he immediately ran as fast as he could to sign up.


In order to help clean up the legal profession, Adam Kilgore of the Mississippi Bar will be giving away free, round-trip plane tickets to the North Pole where they keep their bar complaint forms (which are NOT available online). If you don't want to go to the North Pole, you can enjoy Brant Brantley's (of the Mississippi Commission on Judicial Performance) free guided tours of the quicksand field over by High Street where all complaints against judges disappear. If for some reason you are unable to control yourself, never fear; Judge Houston Patton will operate his jail where no lawyers are needed or allowed as you just sit there for minutes... hours.... months...years until he decides he is tired of you sitting in his jail. Do not think Judge Patton is a bad judge however as he plans to serve free Mad Dog 20/20 to all inmates.

Trollfest '09 is a pet-friendly event as well. Feel free to bring your dog with you and do not worry if your pet gets hungry, as employees of the Jackson Zoo will be on hand to provide some of their animals as food when it gets to be feeding time for your little loved one.

Relax at the Fox News Tent. Since there are only three blonde reporters in Jackson (being blonde is a requirement for working at Fox News), Megan and Kathryn from WAPT and Wendy from WLBT will be on loan to Fox. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both and a torn-up Obama yard sign will entitle you to free drinks served by Megan, Wendy, and Kathryn. Get your tickets now. Since this is an event for trolls, no ID is required. Just bring the hate. Bring the family, Trollfest '09 is for EVERYONE!!!

This is definitely a Beaver production.


Note: Security provided by INS.

Trollfest '07

Jackson Jambalaya is the home of Trollfest '07. Catch this great event which promises to leave NE Jackson & Fondren in flames. Sonjay Poontang and his band headline the night with a special steel cage, no time limit "loser must leave town" bout between Alan Lange and "Big Cat"Donna Ladd following afterwards. Kamikaze will perform his new song F*** Bush, he's still a _____. Did I mention there was no referee? Dr. Heddy Matthias and Lori Gregory will face off in the undercard dueling with dangling participles and other um, devices. Robbie Bell will perform Her two latest songs: My Best Friends are in the Media and Mama's, Don't Let Your Babies Grow up to be George Bell. Sid Salter of The Clarion-Ledger will host "Pin the Tail on the Trial Lawyer", sponsored by State Farm.

There will be a hugging booth where in exchange for your young son, Frank Melton will give you a loooong hug. Trollfest will have a dunking booth where Muhammed the terrorist will curse you to Allah as you try to hit a target that will drop him into a vat of pig grease. However, in the true spirit of Separate But Equal, Don Imus and someone from NE Jackson will also sit in the dunking booth for an equal amount of time. Tom Head will give a reading for two hours on why he can't figure out who the hell he is. Cliff Cargill will give lessons with his .80 caliber desert eagle, using Frank Melton photos as targets. Tackleberry will be on hand for an autograph session. KIM Waaaaaade will be passing out free titles and deeds to crackhouses formerly owned by The Wood Street Players.

If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

This is definitely a Beaver production.

Note: Security provided by INS
.