May's revenue plunged 10.9%, to $536 million, Gannett said in its monthly statistical report. It was the worst monthly performance this year, hinting at an acceleration in GCI's deteriorating finances -- and threatening more job cuts ahead. The results followed GCI's stunning announcement last week that it is freezing the pension plan.
The report was released after stock markets closed. In extended-hours trading, which often foreshadows the next day's investor reaction, GCI shares fell 5.6%, to $24.14 a share. In regular trading so far this year, shares have traded as low as $25.17, Google Finance says.
Across board, May sales worsen
As this chart shows, results were even weaker than in April. May's newspaper publishing ad revenue -- Gannett's No. 1 source of sales -- fell 14.3% from a year ago, to $347 million, the report says.
Classified ad revenue plunged 18.8%. "Real estate revenues declined 30.9%, employment revenues were 23.9% lower and automotive revenues were down 13.1%,'' the report said.
At USA Today, the only newspaper Gannett breaks out, ad revenue dropped 18.4%, on just 260 advertising pages vs. 324 in May 2007.
In the broadcasting division, which includes elevator advertising service Captivate Network, sales fell 5.9%.
As bad as it was, Gannett's May report was much better than that of McClatchy Co., publisher of The Miami Herald, The Charlotte Observer and 28 other dailies. Monday, McClatchy said its revenue last month declined 15.1% -- prompting the company to announce a 10% cut in its workforce.
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