For
the second consecutive quarter, Gannett has omitted from a regulatory filing an important gauge of
USA Today's financial health, indicating Corporate has permanently discontinued a longtime practice that had become a public relations headache.
Today, in a quarterly filing with the U.S. Securities and Exchange Commission, GCI withheld
USAT's overall advertising revenue trend -- whether it rose or, more likely, fell again. Instead, GCI disclosed the number of paid ad pages during the third quarter, plus the change in digital ad revenue, according to today's
10-Q document. Those digital ad revenues rose 35% from a year ago.
At the time GCI first started withholding the data -- in the fourth quarter of 2009 --
USAT's ad revenue had been falling sharply every quarter for nearly three years. The last time the company disclosed a figure was in this year's second quarter, when revenue plunged 11%. (See chart,
below.)
The latest omission suggests GCI no longer wants to disclose a financial indicator that had turned negative, as
the struggling daily regroups. And it ends a longstanding practice; GCI first started reporting the figure in its 10-Qs in the first quarter of 2002.
Earlier: take note, regulatory document junkies
Someone in Gannett's legal/compliance department must have rendered an opinion that the impact of USA Today's quarterly ad page count on the company's finances is no longer "material." In essence, they're saying that USA Today is no longer material. It's just another "property," no more worth highlighting than the the Argus Leader, the Chillicothe Gazette or the Guam Daily News.
ReplyDeleteNumber of useless senior managers (2008) 103
ReplyDeleteNumber of useless senior managers (2010) 125
Jim,
ReplyDeleteA few months ago you ran a post regarding USAT's "paid ads" and someone commented that the "paid ads" running in USAT were a majority of remnant advertisements sold in bulk (Pella Windows, Amish fireplaces, CashforGold, etc.).
You then started posting on paid vs. Bogus paid ads.
Well, these numbers are starting to prove out. We all know that USAT does not have an effective sales team and that most of the ads that run in print are sold through remnant resellers. Furthermore, USAT.com advertisements are mostly given away for free as a bonus for and print advertiser.
Bottom line, USAT is in big trouble as sales are severely declining and in my position here at USAT, there have been some amazing cover ups that is having many lower level employees questioning the ethics around how USAT conducts business.
How much money are they going to siphon off from the community papers to keep this teetering USA Today afloat? The community papers are already weakened and reeling from cuts and layoffs, and now we hear about another 5,000 or more layoffs planned for 2011. When is USA Today going to be required to live within its own budget even if it means an end to the exclusive closed-doors dinners at the secretive Gridiron Club, or scrapping plans for expensive new downtown Washington offices so USA Today staffers don't have to drive 13 miles to McLean? Why should community papers pay for this largesse and waste?
ReplyDeleteThere are no 5,000 job cuts "planned" for 2011. There has been some recent speculation -- unconfirmed -- that there may be contingency plans for such cuts.
ReplyDeleteI said "and now we hear about" further layoffs. Anyone reading this blog is aware of yesterday morning's postings.
ReplyDeletePlease. There's really nothing to worry about. We're getting a big order of Amish fireplace ads. The sales team has that high tech, upscale market locked!!!!
ReplyDeleteI saw Lori Erdos on an interview the other day in the Hearst building. Go Lori!!!
ReplyDeleteAnd the only possible reason that Erdos was entering that building was an interview? Be serious.
ReplyDeleteQuestioning the ethics of Gannett? Wow, what an idea!
ReplyDeleteThere's been a lot out there in the public for 15, 20 years about Gannett's business "ethics" and how the company systematically went about disabling any competition it found in its hick markets.
As Al Neuharth once said, I think it was him, the accent is on "net" in Gannett.
I've never been much for rumors, but I gotta say this one about the potential massive layoffs doesn't sound off base.
As a previous post noted, Moon supposedly left in a huff over Dubow's plans to kill the community papers.
I can't think of a better way to kill them than further decimate their staffs.
We'll have to wait and see.
Where is the fight-back? Moon left after making those comments, and there doesn't seem to be anyone raising a dissenting voice. I am sure that all the suits see how the properties have been degraded by these huge cuts. But where is anyone pointing out that revenues are only going to decline more if they keep it up and do more.
ReplyDeleteDubow is greasing up his retirement chute and loading up the loot he'll need to continue living the high life......Martore is drooling over her expected coronation and is directing a ton of cash into her own retirement account.....Members of the Board of Directors don't seem to do anything more than attend meetings and collect their checks while the dividend stagnates, the share price drops and increased revenues remain elusive.
ReplyDeleteThe question facing them is why bite the bullet and invest in the product(s) when they believe in the death of print?
But then, if digital is so important, why is that division left in Martore's clueless hands? Where is the digital expert, the innovator that Gannett so desperately needs?
Re 9:55 a.m.'s query as to why the suits aren't pointing out the folly of more cuts, they're doing what Gannett encourages its suits to do: watching their own asses and looking for ways to make the other guy/gal look bad.
If this isn't enough for Wall Street to dump Gannett, I don't know what is.
Re: USAT Advertising.....
ReplyDeleteI see wher ESPN has a promotion going on where fans can vote for players to get into the NFL Hall of Fame. Something like that.
There was a time when USAT would've been a part of that promotion & would've had an advertiser attached to it to the tune of $1.2-1.5MM.
That's like shooting friggin' fish in a barrel.
Can those current bozos even fog a mirror??
Gath
USAT Executive - you are as clueless as they come.
ReplyDeleteGath - it was a different world when you sat at the big round desk.
ReplyDeleteBoth Lori and I were interviewing for the same job at Hearst!!!
ReplyDeleteI don't think you can name one person at USA Today who isn't spending most of their work day looking and interviewing for another job, including David L. Hunke. The good news is that many people are finding much better paying jobs out there and finding them quickly. Licensing director, auto reporter, research director, social media director, graphic designer and online sales manager all found jobs this week and got out. Not only can USA Today not attract any talent -- it can't hold on to the talent it has now. Don't let Hunke fool you into thinking you're lucky to have a job.
ReplyDelete10:59 - add to the list a recently fired USAT account executive who is about to land a new gig. Happier than ever! I wonder if they realize that when they let these folks go, they are actually doing them a favor?
ReplyDelete