Week Oct. 25-31 | Your News & Comments: Part 3

Can't find the right spot for your comment? Post it here, in this open forum. Real Time Comments: parked here, 24/7. (Earlier editions.)

Stock | A roller coaster path pitches even lower

Reflecting more unease among investors, Gannett's stock closed yesterday at $11.85 a share -- the lowest since Dec. 8, 2009, when it finished at $11.80, according to Google Finance data. (Table of historical prices.)

Still, shares are up 7.3% from a year ago, although that lags the bigger 11% gain in Shares are now down 10.4% from a year ago vs. a gain of 9.6% in the S&P 500 index, a broader measure of overall stock market activity. (Chart, above; bigger version.)

To be sure, other newspaper stocks have been whacked even harder. Lee Enterprises, which publishes the Arizona Daily Star, has tumbled 43% from a year ago. The New York Times Co. is down 12.7%. And McClatchy, publisher of the Miami Herald, is off 9.8%.

GCI's trading low for the past year was $9.53, and its high was $19.69, a plateau reached April 16. Shares have been drifting down ever since on worries the nation's economic growth is stalling, dampening consumer confidence and pinching prospects GCI will be able to significantly ramp up revenue.

Martore

Cost-cutting worries
Now, there's rising speculation among Gannett Bloggers that the company may be planning another round of job cuts, furloughs and wage freezes. To date, however, Chief Operating Officer Gracia Martore hasn't shown her hand, other than to say two weeks ago that she wasn't considering any "significant" severance costs in the current quarter.

Wall Street is growing impatient: The past two quarterly financial reports have left investors deeply unhappy.

• On July 15, the day before GCI released its second-quarter report, shares closed at $15.11. The day of the report, they plunged to $13.50 on heavy trading: nearly 13 million shares.
• Two weeks ago, the day before the third-quarter report, shares closed at $14.09. Then, the day of the report, they dived anew, to $12.85; nearly 16 million shares changed hands.

Please post your replies in the comments section, below. To e-mail confidentially, write jimhopkins[at]gmail[dot-com]; see Tipsters Anonymous Policy in the rail, upper right.

Take note, Gannett regulatory documents junkies

As early as today, Gannett could file its third-quarter financial report with the U.S. Securities and Exchange Commission. This 10-Q, unlike the earnings statement issued two weeks ago, offers far more detail about the company's finances. Once it is filed, a copy should be available among other SEC documents in the investor relations section of Corporate's website. (Here's the second-quarter 10-Q.)

Week Oct. 25-31 | Your News & Comments: Part 2

Can't find the right spot for your comment? Post it here, in this open forum. Real Time Comments: parked here, 24/7. (Earlier editions.)

USAT | Meanwhile, in non-election news . . .

"Craft enthusiasts everywhere, mourn."

-- USA Today reader Reflect08, in a comment on one of the paper's most popular stories at the moment: Kimberly-Clark takes swipe at tubeless toilet paper. As I post this, the Page One story has attracted more than 200 comments.

Related: creative uses for toilet paper rolls

GCI says some Sunday circulation is 'improving'

In a statement today, Corporate said the new ABC data for the six months ended Sept. 30 showed "improving" Sunday home delivery paid circulation at many of Gannett's daily newspapers, including 21 of U.S. Community Publishing's top newspapers.

"They include some of the company's largest circulation newspapers, including The Arizona Republic, The Cincinnati Enquirer, The Des Moines Register, South Carolina's Greenville News, The News Journal of Wilmington, Del., The News-Press of Fort Myers, Fla., and The Tennessean of Nashville,'' the statement says.

It's important to note that "improving" doesn't necessarily mean increases. The Republic, for example, saw its overall Sunday sales stay essentially flat, at 457,059 copies. But that's better than the industry's average decline of 6.5%. Also, in today's statement, Corporate is focusing on "home delivery paid circulation."

The Sunday trend follows Gannett's year-long effort, buttressing sales on that advertising-heavy day.

Tips for logging on to the new health benefits site

Several readers have reported having trouble accessing the health insurance part of the new ACS employee benefits website, at benefits.gannett.com. ACS is Gannett's newly appointed benefits administrator, replacing long-time vendor Hewitt Associates.

Now, Anonymous@9:24 p.m. explains why: "The new benefits website has been live since the first of the month, when they turned on the 401(k) part. The health portion doesn't go live until Nov 1."

In late August, Corporate distributed a brochure about the switch to ACS. That brochure says even more detailed information about health benefits will become available on the site starting Nov. 8.

I've posted a copy of the brochure to my secure Gannett Blog page on Google Documents, where you can view and download a copy yourself.

Earlier: Wellness checkups now getting pushed

As your medical benefits change, remember this

"People who get up every day and go to work have a right to good health insurance for themselves and their families.''

-- Gannett board of directors member Donna Shalala, in a statement to The New York Times last March, following Congressional passage of historic health-care reform legislation.

Urgent: Board declares 4-cent quarterly dividend

In a statement, Corporate just announced that the board of directors today declared a dividend of 4 cents per share, payable Jan. 3 to shareholders of record as of the close of business Dec. 10. The board's decision, which was expected, came during the 10-member panel's regular quarterly meeting. It's unclear whether any other announcements are due.

This marks the eighth consecutive quarter of 4-cent per share dividends since the payout was slashed 90% in February 2009, when the company was in grave financial straits. (Dividend history.)

Following Corporate's announcement today, Gannett shares recently traded for $12.25, up 10 cents, or about 1%. They are now flat from a year ago vs. an 11% gain in the S&P 500 index, a broad measure of overall stock market activity.

Lick this! Social media, and the small advertiser

San Francisco ice cream impresarios Jack Godby and Sean Vahey were once the sort of bread-and-butter small advertisers routinely found in newspapers like The San Francisco Chronicle. But that's changing rapidly in the new world of online marketing, now dominated by free, do-it-yourself promotion, blogger Alan Mutter says in this excellent post today.

Godby and Vahey leveraged social media to build a community around their barely two-year-old Humphry Slocombe ice cream shop, which retails dozens of exotic flavors like prosciutto and beet sorbet.

The shop now has 301,384 followers on Twitter vs. the 223,539 individuals who buy the print edition of the Chronicle on an average weekday, yesterday's new circulation data show -- or the 10,639 people who follow the paper’s website on Twitter, Mutter says.

Now, watch Godby and Vahey tell their story in the following video:



Earlier: Gannett launches new start-up focused on small, midsize firms

Got an advertising story to recommend? Please post your replies in the comments section, below. To e-mail confidentially, write jimhopkins[at]gmail[dot-com]; see Tipsters Anonymous Policy in the rail, upper right.

Sponsors | Thank you, to an Arizona supporter!

I just received a $15 contribution via PayPal from a reader in the Phoenix area.

I'm trying to earn $4,000 quarterly, mostly through sponsorships of $5 per reader, plus limited ad sales. Please use the "Donate" tool in the green rail, upper right. Or mail cash/checks payable to: Jim Hopkins, 584 Castro St. #823, San Francisco, Calif., 94114-2594.

Mail | 'Wellness checkups' now getting pushed

In an e-mail about changes to Gannett's employee medical benefits, a reader writes about one of the new components:

Everyone must have a wellness checkup, or take the health risk assessment online. The checkup must be completed by August, so the company can figure the results into premium rates for 2012. If you don't do either, they're going to put an extra "premium" on rates for 2012. For those with chronic conditions, the company is going to "help" you manage them.

What have you noticed about the new medical benefits plan? Please post your replies in the comments section, below. To e-mail confidentially, write jimhopkins[at]gmail[dot-com]; see Tipsters Anonymous Policy in the rail, upper right.

Sponsors | Thank you, to another N.Y. supporter!

Via yesterday's snail mail, I received a $20 contribution from a reader in the White Plains, N.Y., area. Near the end of the quarter's first month, I've earned just 18% of my goal. The breakdown:

• Reader contributions: $155
• Advertising: $557

I'm trying to earn $4,000 quarterly, mostly through sponsorships of $5 per reader, plus limited ad sales. Please use the "Donate" tool in the green rail, upper right. Or mail cash/checks payable to: Jim Hopkins, 584 Castro St. #823, San Francisco, Calif., 94114-2594.

Week Oct. 25-31 | Your News & Comments: Part 1

Can't find the right spot for your comment? Post it here, in this open forum. Real Time Comments: parked here, 24/7. (Earlier editions.)

Detroit | Freep's daily circ falls 9%, new data show

Now we know why Gannett management is demanding Detroit newspaper workers take a 12% pay cut.

Weekday circulation at the Detroit Free Press plunged 9%, to 245,326, during the six months ended Sept. 30 from the same period a year before, new ABC figures out today show. That's far worse than the average 5% decline for all dailies. Sunday, the most advertising-rich day of the week, was no better: The Freep's sales tumbled 11%, to 494,013, vs. an average 6.5%, according to the ABC.

Among the top 25 papers, The Arizona Republic's fell 2.5% on weekdays, to 308,973. But in an improvement, they were basically flat on Sundays, at a 0.4% decline, to 457,059. GCI has been focusing on Sunday circulation during the past year.

As expected, USA Today's circulation fell in the low single digits: down 3.7%, to 1,830,594 copies, the report shows. GCI Chief Operating Officer Gracia Martore had predicted the decline would be in that range during the third-quarter earnings conference call.

[Updated at 2:46 p.m. ET: Digging deeper into the numbers, however, Advertising Age notes in a new story: "At USA Today, you also have to decide what to make of the distinction between circulation paid for by individuals and circulation distributed free to airline passengers, say, or hotel guests. USA Today's individually paid circulation declined 9.3% to 692,901."]

At one of USAT's chief rivals, The Wall Street Journal, sales grew 1.8%, to 2,061,142. The WSJ and the Dallas Morning News were the only two of the top 25 papers to show growth. The WSJ has been adding more general news -- including sports, politics and lifestyle -- since Rupert Murdoch's News Corp. bought the paper in December 2007.

Among the three national dailies, The New York Times had the worst performance: Weekday sales were down 5.5%, to 876,638. (Sunday was down 3.4%, to 1,352,358.)

Why does the WSJ continue to pull ahead of USAT and the NYT? Please post your replies in the comments section, below. To e-mail confidentially, write jimhopkins[at]gmail[dot-com]; see Tipsters Anonymous Policy in the rail, upper right.

[Image: today's Freep, Newseum]

Week Oct. 18-24 | Your News & Comments: Part 2

Can't find the right spot for your comment? Post it here, in this open forum. Real Time Comments: parked here, 24/7. (Earlier editions.)

Board of directors set to meet in regular session

The current directors, starting top row, left to right: Craig Dubow, Howard Elias, Arthur Harper, John Louis, Marjorie Magner, Scott McCune, Duncan McFarland, Donna Shalala, Neal Shapiro and Karen Hastie Williams. Their brief bios start on page 8 of this year's shareholders proxy report.

Gannett's 10-member governing board has held its quarterly meeting during the final week of October for each of the past five years, and this month will follow that tradition, a reader tells me. The coming week's meeting likely would include approval of a quarterly dividend.

We hope it also will include a status report on a high-profile executive vacancy, that of chief digital officer -- a position that's now been empty 200 days. That ought to fall under the purview of the five-member Digital Technology Committee, which includes Chairman and CEO Craig Dubow. It's hard to take the company's digital aspirations seriously without a full-time digital chief. (For the moment, I'm told, that explains why Gracia Martore's unofficial title is president, chief operating officer, chief financial officer and acting CDO, plus would-be chairman and CEO.)

A dividend history
The payout has been four cents a share for seven consecutive quarters now, producing a yield of 1.3%, based on Friday's closing price of $12.18 a share. (Current stock price.) It was slashed 90% in February 2009, when the company was in grave financial straits. (History of dividends.) Since then, GCI has been using available cash to pay down debt: $210 million in this year's third quarter.

During the quarterly earnings conference call with Wall Street analysts, the dividend did not come up. In response to a question about paying down debt, however, Martore said: "We're going to continue to do a good job on that front. Obviously a lot will depend on if there are some investment opportunities that we think are worthy to look at, that would certainly play into it. We also have different dynamics in the fourth quarter with some of our cash requirements. So we'll just have to see how that plays out. We'll give a little bit more guidance on that in early December when we present at the conferences."

Layoffs | Martore's cautious reply on what's next

Gannett's third-quarter expenses included about $7 million in severance costs associated with letting employees go. Most of that, we learned during last week's conference call with Wall Street analysts, was due to an ongoing reorganization of the company's leading daily. Indeed, Chief Operating Officer Gracia Martore and Noble Financial Analyst Mike Kupinski had the following noteworthy exchange about any future layoffs across GCI, according to Corporate's transcript:

Kupinski: "Of the roughly $7 million in severance expenses, I would imagine that most of that was at USA Today, right?"

Martore: "Certainly, the lion's share of that would be associated with some of the work that is being done at USA Today."

Kupinski: "Are you contemplating any other significant severance costs in the fourth quarter?"

Martore: "Not at the present time."

Not at the present time. That's a good illustration of the wiggle room all companies leave when asked about future plans. For example, when layoffs are under consideration, but not yet finalized, it's best not to completely close off the possibility, or Wall Street will question your truthfulness during the next go-around.

(Note: I'm certain Kupinski was asking about severance costs across GCI during the fourth quarter, not just at USAT.)

Context, please
To put the third quarter's $7 million into context, here's how much GCI spent on severance annually in each of the following years, regulatory documents show:

• 2007: $29 million
• 2008: $119 million
• 2009: $65 million

Related: GCI's total employment, year by year

Please post your replies in the comments section, below. To e-mail confidentially, write jimhopkins[at]gmail[dot-com]; see Tipsters Anonymous Policy in the rail, upper right.

Wilmington | Ledford fires back at O'Donnell

News Journal Executive Editor David Ledford takes on controversial Republican Senate nominee Christine O'Donnell of Delaware, in a column today that says her staff had blocked a reporter for the Wilmington paper from covering candidate events, and that O'Donnell's bodyguards had, on one occasion, physically shoved the reporter into a chair.

His column appeared three days after a candidate debate where O'Donnell questioned whether the U.S. Constitution expressly mandates the separation of church and state.

Related: News Journal circulation Monday-Friday, 92,538; Sunday, 113,467, according to ABC.

KXTV | Helt named station general manager

Gannett's broadcasting division just named Anita Helt president and general manager of ABC television affiliate KXTV of Sacramento, Calif., in a statement that doesn't answer an obvious question: Who is she replacing at the top?

[Updated at 1:31 p.m. ET: Central Valley Business Times reported Aug. 30 that then-GM Russell Postell had resigned. "Neither the station, nor its owner, Gannett has had official comment,'' the publication said. "Phone calls and e-mails have not been returned. Postell was promoted to the station’s top job in February 2001 after seven years in its sales department."]

Helt was vice president over marketing and programming for KPNX, Gannett's NBC affiliate in Phoenix. She joined KPNX in 1995 as a special projects manager, the statement says. Prior to relocating to Phoenix, Helt was responsible for media and public relations for the state of Kansas. She also has experience as an anchor/reporter.

Please post your replies in the comments section, below. To e-mail confidentially, write jimhopkins[at]gmail[dot-com]; see Tipsters Anonymous Policy in the rail, upper right.

USAT | Is this a front page for older readers?

Two days after Publisher Dave Hunke said he's now steering USA Today's print edition toward older readers, the paper's front page was dominated this morning by two big inside "refers," three stories, and one advertisement. Which of the following would appear in a paper targeted at oldsters? (Bigger front page view.)

• Top 25 coaches poll
• Taylor speaks
• Diabetes cases may double by 2050
• The new team we love to hate
• CAN YOU READ THIS?
• Subway sandwiches advertisement

Please post your replies in the comments section, below. To e-mail confidentially, write jimhopkins[at]gmail[dot-com]; see Tipsters Anonymous Policy in the rail, upper right.

[Image: Newseum]

Mail | Medical premiums said 5% higher in 2011

Anonymous@12:16 a.m. says in a new comment:

Are you all receiving your lovely benefits re-enrollment packages today? No big surprise, but it says most of us will see an average of 5% increase in premiums for 2011.

Great. Those of us still employed with Gannett are getting poorer every year -- wage freezes, furloughs, health care up 5% in one year? I can't remember the last time I got a 5% raise.

USAT | Hello, Hunke! A 2008 task force is calling

Here is how plenty of managers at Gannett's smaller newspapers greeted Publisher Dave Hunke's epiphany that USA Today's print edition must now focus on older readers: They rolled their eyes.

Hunke

That's because in early 2008 -- nearly three years ago -- a high-level Gannett task force concluded the future of print "hinges firmly on our ability to satisfy newspaper readers over the age of 40 -- primarily Baby Boomers," because they're the ones most inclined to be regular newspaper readers.

"We need to be realistic about the print platform,'' the confidential 14-page report said. "The primary audience of readers is over the age of 40 now, and that will not change."

Although the report was proprietary -- Corporate's top publicist at the time, Tara Connell, would not discuss it with me -- surely Hunke, then head of the Detroit newspapers, should have seen it. (Unless, of course, Corporate likes to form task forces simply to publish reports no one reads or follows.) So, where has Hunke been all this time?

Hard, watchdog news
The report was meant for the more than 80 U.S. community newspapers, so it references the importance of local news. Nonetheless, its first two recommendations on news vs. fluff would apply to USAT in print as it chases older readers:

1. Hard news and local news remain our greatest strength and are Boomers' top news priorities; therefore, they should be ours. If editors must cut content, hard news and local news should remain untouched.
2. Our watchdog role is perceived as central to our responsibility as a local newspaper. We must find a way to strengthen our watchdog reporting efforts.

Of No. 2, it's worth noting that USAT is only now beefing up its watchdog reporting with a new investigative team.

'Gotten off track'
Hunke's new pronouncement came yesterday in an interview with Poynter Institute blogger Rick Edmonds, who wrote about USAT's ongoing reorganization:

"Part of the lengthy internal research that led to the changes, Hunke said, was a conclusion that USA Today and other newspapers may have gotten off track trying to woo young audiences or women with a something-for-everyone approach. He has concluded that the print edition should now mainly target an older, general news audience, who favor a traditional presentation."

Arrgh! Was this "internal research" the result of a . . . task force?

USAT | Hunke: print will now target older readers

In a new post for his Biz Blog, the Poynter Institute's Rick Edmonds writes today about USA Today's reorganization, after interviewing Publisher Dave Hunke. (Hunke was at Poynter yesterday for an Associated Press Managing Editors panel discussion about new business models in journalism.) Edmonds writes:

Part of the lengthy internal research that led to the changes, Hunke said, was a conclusion that USA Today and other newspapers may have gotten off track trying to woo young audiences or women with a something-for-everyone approach. He has concluded that the print edition should now mainly target an older, general news audience, who favor a traditional presentation.

By contrast, Hunke said, early data on digital tablet buyers indicate that they skew 10 to 15 years younger than the typical print reader. That suggests both a different style of presentation and a different content mix.

Tech 101| How's CCI NewsGate working so far?

University of Montana undergraduate student Kristen Theiler asked me to post the following author's query about the new computer system Gannett is installing across the U.S. newspaper division. CCI NewsGate is part of the two-year-long rollout of five newspaper page design and production hubs. She writes:

I am very interested in knowing how Gannett's CCI NewsGate system has worked since it was launched, and if you would share with me any information regarding the switch.

Also, if you could put me in contact with people who work with the system on a regular basis, it would be very helpful.

I'm a senior at the University of Montana, and not only is my senior thesis on the future of newspaper design, but so is the career that i have been training for since high school.

Please post your replies to her query in the comments section, below. Or you mail e-mail jimhopkins[at]gmail[dot-com], and I'll forward your notes to her -- without identifying you, if you choose. See my Tipsters Anonymous Policy in the rail, upper right.

Clarksville | Pub leaving; replacement in doubt

The publisher of Gannett's two small mid-Tennessee dailies is leaving for a marketing and public relations job at a state university, The Leaf-Chronicle of Clarksville reported today, in a story that does not say when -- or even whether -- he's being replaced. Andrew Oppmann, 47, also was publisher of The Daily News Journal of Murfreesboro.

He joined Gannett Tennessee in May 2007, the paper says, "first splitting his time between Murfreesboro and The Tennessean in Nashville, where he was a vice president until adding his Clarksville duties in September 2008."

Carol Hudler, president of GCI's South Group newspaper division, and publisher of the Tennessean, told the Leaf-Chronicle: “We wish Andrew well in his new opportunity and thank him for his hard work and community service on behalf of Gannett Tennessee." She wasn't quoted about any plans for filling Oppmann's position.

The Clarksville-Mufreesboro position would be at least the second left open as a result of shifts within GCI. Last month, Corporate named Linda Greiwe the new publisher of Missouri's Springfield News-Leader, leaving unfilled her position as president of the Newspaper Network of Central Ohio -- a portfolio of smaller dailies.

Marymont, Hunke in APME panel this afternoon

U.S. newspaper division News Department Vice President Kate Marymont is moderating a panel discussion this afternoon on new business models in journalism, with USA Today Publisher Dave Hunke as one of the guests.

The 2 p.m. ET event is being held at this year's Associated Press Managing Editors convention at the Poynter Institute in St. Petersburg, Fla. Poynter's Steve Myers is live-blogging the discussion right now, which also includes former USAT Publisher Tom Curley, now CEO of the Associated Press.

Earlier: USAT's "revolutionary transformation" rolls out

Newsquest | In government cuts, other shoe drops

Responding to questions from Wall Street analysts about the financial health of Gannett's large U.K. newspaper subsidiary, Chief Operating Officer Gracia Martore said Friday:

"Clearly the progress at Newsquest stalled a bit in the third quarter. If you follow any of the economic and political backdrop in the U.K., you'd note that it's more difficult in the U.K., I believe, than here in the states, as they have had a lot of conversations and the current . . . government leadership there has indicated that on Oct. 20 they're going to be announcing final significant spending cuts across the country."

Sounding annoyed, Martore also tamped down renewed speculation that GCI might sell Newsquest.

Today, Britain's Treasury chief George Osborne said the country's government will make the largest cuts to public spending since World War II -- slashing benefits and public sector jobs in a five-year austerity plan.

By the numbers
Newsquest's advertising revenue fell 7.1% in the third quarter from a year ago vs. a 3.2% drop in the U.S. newspaper division.

It employs one in seven of the company's 35,000 global employees -- a total of 5,100 -- at 17 dailies and hundreds of weekly titles. GCI cut 23% of the division's jobs last year, more than any other operating unit, according to regulatory filings. GCI bought the company in the summer of 1999 for about $1.5 billion.

USAT | A 'revolutionary transformation' rolls out

Hunke

You will recall that USA Today Publisher Dave Hunke said he would unveil more details of the paper's "bold and revolutionary transformation" during a staff meeting that was held yesterday.

Today, in what I believe is the struggling paper's first public statement since that meeting, USAT announced . . . this.

Tip | Anyone know about a digital confab today?

Anonymous@11:06 a.m. wrote: Gannett Digital conference call "all-hands meeting" today at 3 p.m. ET.

Please post your replies in the comments section, below. To e-mail confidentially, write jimhopkins[at]gmail[dot-com]; see Tipsters Anonymous Policy in the rail, upper right.

By the numbers | High-profile job vacancies

Friday's third-quarter conference call with Wall Street analysts might have produced news about major hires and promotions. It did not. And that extends a problem for Corporate. Here's why.

It appears the board of directors has anointed Gracia Martore as Craig Dubow's likely successor as chief executive. But that surely couldn't happen until she finds someone to assume her chief financial officer duties. After all, she can't be CEO, president, chief operating officer, and CFO -- all at the same time, can she? With that in mind, days now elapsed since these vacancies were first made public:

260

Gannett Chief Financial Officer

(has been Gracia Martore)

195

Gannett Chief Digital Officer

(was Chris Saridakis)

31

Ripple6 CEO

(was Sang Kim)

Got one that I missed? Post replies in the comments section, below. To e-mail confidentially, write jimhopkins[at]gmail[dot-com]; see Tipsters Anonymous Policy in the rail, upper right.

Paywalls | What are results? We really don't know

Gannett entered a crucial phase of future revenue growth during the third quarter, when in early July it erected paywalls at three of its newspapers, and faced a decision about setting subscription prices for USA Today's iPad application.

In USAT's case, GCI kicked the decision down the road, maintaining a free app instead of asking readers to pay for its use. At three U.S. community newspapers, the company added paywalls that varied in pricing and content. Those papers are in Tallahassee, Fla.; Greenville, S.C., and St. George, Utah.

Friday was Corporate's first opportunity to brief Wall Street stock analysts on results from these experiments, when it discussed third-quarter financial results during a conference call. Now, after reviewing the transcript, I'm struck by how little we were told.

CEO Craig Dubow devoted 570 words to the subject during his presentation, and this, apparently, is the bottom line: "We now have a couple of months of data as a result of these tests and, while it is still early, we are seeing some very interesting results and important takeaways."

Beyond that, details are scarce. Dubow says subscribers consume more content than non-subscribers. "Our subscribers are much more heavily engaged with our content than non-subscribers," he said. "Web users who are subscribers are consuming four and five times as many pages per visit as non-subscribers."

Yet, isn't that expected? For example, if I buy Coca-Cola and my neighbor doesn't, isn't it likely I'll drink more than my neighbor?

More unanswered questions
Even the most encouraging metric Dubow offered tells use relatively little: "We are seeing month-over-month gains in pageviews at two of the three sites." Question: How many pageviews did these sites lose after the paywalls were erected? And how many have the papers now recovered?

Perhaps most important, we weren't told anything about the impact on revenue. How does digital subscription revenue compare to any digital advertising losses, due to lower traffic, now that fewer people can view the sites for free?

To be sure, as Dubow said, GCI has just three months' data to examine. Changes in subscription prices; better promotion of these new offerings, plus content improvements, could significantly alter the results.

For now, though, shareholders and employees are left with a lot of unanswered questions.

But perhaps I missed something? None of the analysts asked a single question about paywall results during the conference call's Q&A session. Read Corporate's transcript yourself, and let us know. Please post your replies in the comments section, below. To e-mail confidentially, write jimhopkins[at]gmail[dot-com]; see Tipsters Anonymous Policy in the rail, upper right.

[Image: today's Greenville News, Newseum]

Stock | As other pubs report, shares compared

Two other major newspaper publishers reported third-quarter financial results today: New York Times Co. and McClatchy Co. Investors warmed more to NYT Co.'s results, but panned McClatchy's. Gannett disclosed its quarterly results last week; investors, too, gave them a thumbs down.

Based on recent trading today, performance of the three companies' shares over the past year, with the S&P 500 index for comparison:

• GCI: down 13%
• MNI: down 11%
• NYT: down 10%
• S&P: up 7%

Related: GCI's financial statement; MNI's statement, and the NYT's

[Data: Google Finance]

Week Oct. 18-24 | Your News & Comments: Part 1

Can't find the right spot for your comment? Post it here, in this open forum. Real Time Comments: parked here, 24/7. (Earlier editions.)

Tell us what CEO Dubow says in today's audiocast

Dubow

Gannett chief executive Craig Dubow addresses the troops today in an audiocast set to start at 1 p.m. ET. He's expected to talk about Friday's weaker-than-expected third-quarter financial report, as well as other GCI news. Dubow's team also is soliciting questions from employees. Gannett Bloggers, as well, have been suggesting questions, too.

His remarks come shortly after three hours before stock markets close, indicating he's not planning to make any big news that might affect GCI's stock price. Those shares, meanwhile, recently traded for $12.52, down 33 cents, or 2.6%, after plunging 8.8% on Friday. Today, two analysts issued cautions on GCI's prospects.

'Soprano State' documentary premieres tonight

The film is based on a book by veteran Gannett/New Jersey Press Media journalists Bob Ingle and Sandy McClure, according to the Asbury Park Press.

In the trailer, above, "'Welcome to New Jersey'" postcards flash on the screen, along with newspaper articles detailing the downfall of some of the state’s most powerful people — including elected officials of both political parties, businessmen, religious leaders and those with alleged mob ties. News clips feature those arrested being led away in handcuffs," the newspaper said yesterday in this story.

Guests at tonight’s New York City premiere of the 90-minute film are expected to include New Jersey Gov. Chris Christie — the longest-serving former U.S. attorney for the state, a contingent from the FBI, laywers, journalists and photographers who covered the cases, and industry professionals, the paper says.

Stock | Analysts downgrade, caution on GCI

In the wake of Friday's weaker-than-expected third-quarter financial report, Argus Research today downgraded Gannett's stock to a "hold" from a "buy."

Also, UBS analyst John Janedis lowered his 2011 earnings forecast by a penny, to $2.18 a share from $2.19. His current, fourth-quarter forecast remains unchanged, at 78 cents a share. UBS keeps its "neutral" rating on GCI shares, however.

"The next 10 weeks will test the newspaper ad market's ability continue to improve and GCI's stock will likely follow,'' Janedis says, according to research tracker SmarTrend.

GCI recently traded today for $12.60 a share, down 26 cents or 2%. That follows an 8.8% drop on Friday. Earlier today, GCI traded as low as $12.34.

The stock is now down 3% from a year ago vs. an 8% gain in the broader S&P 500 index.

USAT | Q3 ad page count virtually unchanged

[Chart shows changes in page counts and revenue]

Struggling to right itself, USA Today published 495 pages of paid advertising during the third quarter, according to Gannett's just-released quarterly financial statement. That is basically unchanged from a year ago, when the paper carried 493 pages.

This is good news because it doesn't show further erosion, and bad news because it also doesn't show improvement: 495 is the second lowest number of pages in nearly three years -- evidence of USAT's financial straits.

Unfortunately, we don't know what the new page count means in terms of advertising dollars. If pages are selling for less than a year ago, revenue would be lower even if the page count remains the same, or grows. That's what happened in the first quarter, when the number of pages rose 3%, but ad revenue fell 11%, according to that quarter's more detailed 10-Q report to federal regulators.

(We still don't know what happened in the second quarter, because GCI -- in a rare move -- omitted the revenue figure from that period's 10-Q. I've since estimated the decline as high as 20%, more than twice the first quarter's loss.)

A numbers maze

Martore

In this year's third quarter, USAT's print ad revenue was down a "couple of percent;'' that's what GCI President and Chief Operating Officer Gracia Martore told stock analysts on Friday's conference call. Meanwhile, digital ad revenue soared 35.1% during the period, according to Friday's statement.

But without knowing the base for print or for digital, it's impossible to know how all this adds up.

What we do know is: Something happened during the spring to finally spook USAT Publisher Dave Hunke into ordering up about 130 more job cuts, and a still-evolving reorganization meant to re-emphasize a digital-first strategy. Hunke is expected to give more details on that reorg during a staff meeting set for 2 p.m. ET on Tuesday.

Tip | I'm hearing more chatter about Q1 furloughs

One Gannett newspaper may impose a wage freeze, in addition to unpaid furloughs during the three months beginning about Jan. 1, according to a well-placed reader.

Since posting this item four days ago, however, it's now sounding more like any furloughs would be imposed on a case-by-case basis. That is, worksites doing well financially would escape them, while sites with weaker results would not.

As well, I suspect any mandatory unpaid time off would fall on the U.S. and U.K. newspaper divisions, rather than, say, the broadcasting division, which just completed a bang-up third quarter.

As always, I continue to look for further confirmation and details. Until then, this all remains informed speculation.

Furlough history
In 2009, GCI imposed a one-week, unpaid furlough across all U.S. divisions during the first quarter. Another furlough followed in the second quarter; that one, also for most U.S. divisions, called for one unpaid week for most employees, and a second week for other, highly paid workers.

This year, the U.S. newspaper division, Corporate and some other divisions were furloughed for one week, during the first quarter.

Questions for Dubow during tomorrow's audiocast

CEO Craig Dubow will host an employee audiocast at 1 p.m. ET on Monday. An advisory sent to employees says: "He'll discuss third-quarter earnings and other company news. He is also looking forward to taking your questions. To tune in and to send your questions before the audiocast, go to http://gannett.gci/chat/live.asp?chatid=198."

But why wait?! Post questions you'd like Dubow to answer in the comments section, below. To e-mail confidentially, write jimhopkins[at]gmail[dot-com]; see Tipsters Anonymous Policy in the rail, upper right.

Detroit | Pact expires as GCI, unions in stand-off; company continues to press for a 12% wage cut

Gannett is holding firm to its demand that labor unions at the two money-losing Detroit newspapers accept a new, three-year contract that would impose a 12% pay cut; a two-year wage freeze, and potentially higher medical coverage costs. That's according to a newsletter distributed Friday to members of the Metropolitan Council of Newspaper Unions.

The current contract, which I believe has been extended several times, expired at midnight Friday. Gannett refused to extend it further, the newsletter says.

In all, the negotiations cover about 1,400 employees of the GCI-owned Detroit Free Press; MediaNews Group's Detroit News, and the Detroit Media Partnership (DMP). The GCI-controlled DMP is a joint operating agency handling advertising, circulation and other business tasks for the two papers. The papers maintain separate, competitive newsrooms, however.

Broader impact unclear
The Detroit talks come as GCI continues to struggle with falling revenue across its newspaper markets, according to the just-released third-quarter financial report. Still, it's unclear what management's demands in Detroit might portend for similar wage and benefit cuts at GCI's more than 80 other U.S. daily newspapers.

Indeed, Detroit is a unique situation: Its economy is unusually grim following the auto industry's near meltdown during the Great Recession. Last year, the Freep and News reduced home delivery to just three days a week in a bid to reduce costs. Management's request for more savings may simply indicate that Detroit's financial health has worsened -- a slide that the unions may learn more about soon.

The 12% pay cut would save the company $5.2 million annually, the company told union negotiators, according to the newsletter. The changes in medical coverage -- which would basically mean union members would get the same benefits as non-union employees -- would save an additional $700,000 a year. "In total,'' the newsletter says, "the company is demanding over $6 million per year and $18 million over the life of a three-year collective bargaining agreement."

DMP to open books
Money saved from the 12% pay cut alone indicates the payroll covered by the contract totals about $43.3 million annually.

[Updated at 3:20 p.m. ET: In a fresh post on his blog, Bill Shea of Crain's Detroit Business says the contracts cover about 1,400 employees. He also notes that management has previously acknowledged that the two newspapers are losing millions of dollars, even after last year's retrenchment.]

The DMP has agreed to open its books to an economist for the International Brotherhood of Teamsters, a step apparently designed to help management make its case for concessions. "The company offered to provide financial information on a 'confidential' basis, meaning that union officers and advisors could have access to the information,'' the newsletter says.

Two more bargaining sessions are scheduled for Oct. 26 and 27. The unions have set an Oct. 31 vote by members on whatever offer is on the table at that point, the newsletter says.

[Image: today's Freep, Newseum]

Week of Oct. 11-17 | Your News & Comments

Can't find the right spot for your comment? Post it here, in this open forum. Real Time Comments: parked here, 24/7. (Earlier editions.)

Earnings | Here are Q3 conference call transcripts

CEO Craig Dubow and President and Chief Operating Officer Gracia Martore spoke to Wall Street stock analysts on Friday, discussing that morning's release of the company's third-quarter earnings statement. For those who missed it, Seeking Alpha has prepared a transcript. The tabs at the top of the first page guide you first to the executives' presentation, followed by the especially interesting Q&A session. Also, here's a list of the analysts who participated.

You can also read Corporate's transcript.

To listen to a replay of the one-hour conference call, go here.

Urgent: GCI shares dive 9% on earnings unease

Gannett's stock just closed at $12.85 a share, down $1.24, or 8.8%, as Wall Street expressed unhappiness with today's third-quarter financial report.

The company said earnings had jumped 36%, but the $1.31 billion in revenue was basically unchanged from last year. Also of concern, President and Chief Operating Officer Gracia Martore provided little clear guidance on where the company is headed in the current, fourth quarter, during a conference call with stock analysts.

GCI traded as low as $12.47 earlier today on very high sales volume: Nearly 16 million shares changed hands vs. a daily average of 4.1 million, according to Google Finance. Major stock indexes were divided: The Dow Jones Industrial Average closed down less than 1%. The S&P 500 rose less than 1%.

GCI is now down 2.6% from a year ago vs. a 7.3% gain in the S&P 500.

Sponsors | Thank you, Lone Star state reader!

I've just received a $25 donation from one of my favorite Texas readers.

I'm trying to earn $4,000 quarterly, mostly through sponsorships of $5 per reader, plus limited ad sales. Please use the "Donate" tool in the green rail, upper right. Or mail cash/checks payable to: Jim Hopkins, 584 Castro St. #823, San Francisco, Calif., 94114-2594.

USAT print ad revenue down 'couple of percents'

That's a figure President and Chief Operating Officer Gracia Martore supplied during the third-quarter conference call with Wall Street analysts this morning.

Gannett did not include USA Today's print advertising revenue rate decline in its financial statement; instead, it said only that digital ad revenue had jumped 35.1% during the quarter. However, neither Martore nor the statement supplied dollar figures.

In a departure from past practice, GCI omitted any USAT advertising revenue rate changes in the second-quarter regulatory report, called a 10-Q.

Martore also told analysts that USAT's circulation had fallen about 1.7% during the third quarter. That compares with a steeper 13.6% decline during the six months ended March 31.

She revealed these figures during a portion of the call's question-and-answer session, beginning at about minute 38:30 on the recorded replay.

Earnings | Newspaper profit margins as high as 20%

President and Chief Operating Officer Gracia Martore says she's discussed Gannett's newspaper "margins" -- i.e., their profitability -- on several occasions.

But it was news to me when she revealed how much the U.S. and U.K. newspapers are now making, during an occasionally testy conference call this morning with Wall Street analysts.

Here's what happened. Analyst Doug Arthur of Evercore Partners asked Martore if the U.K. newspaper division, Newsquest, is still making money.

Martore's reply: "Let me once and for all dispel the myth that Newsquest doesn't make money. Newsquest makes a lot of money. In fact, their margin as I have said a couple times is consistent with the margin that our local U.S. Community Publishing operations generate. So their margins are in the high teens to low 20s and they have consistently made money throughout the years."

Listen to the exchange yourself on the call's replay; Arthur's question starts at about minute 45:30.

Please post your replies in the comments section, below. To e-mail confidentially, write jimhopkins[at]gmail[dot-com]; see Tipsters Anonymous Policy in the rail, upper right.

Earnings | Stock prices in Old vs. New Economies

Investors are pummeling Gannett's stock today following another quarterly financial report that some found wanting.

But shares in two other companies are soaring anew on Wall Street's enthusiasm for their roles in the new digital economies. Recent trading prices for:

• GCI: $12.97, down 8% for the day, and nearly 2% from a year ago
• Apple: $310.08, up 2.6% for the day, and 63% from a year ago
• Google: $599.22, up 11% for the day, and 13% from a year ago; GOOG reported better-than-expected third-quarter financial results yesterday

Earnings | What's the correct Q3 revenue figure?

[Updated at 2:15 p.m. ET: The 2009 third-quarter revenue figure in today's statement is, indeed, correct. The $24 million difference appears to be a result of Gannett's restating last year's figure to account for this year's sale of The Honolulu Advertiser, and the loss of that paper's revenue. A Gannett Blog reader pointed me to the correct answer, in the comments section, below.]

My original post: Gannett said today that it eked out a relatively tiny increase in operating revenue during the third quarter vs. the same quarter in 2009: $1,312,335,000 this year vs. $1,312,136,000 last year, according to this morning's statement on preliminary results. That's a slim difference of just $199,000 more that a year ago.

But is that the right comparison?

A year ago, in its more detailed 10-Q regulatory filing, GCI said 2009's third quarter revenue was higher than the amount given this morning: $1,336,583,000. (See Page 15 of the 10-Q, plus the screenshots below.) The same higher figure also appears in the annual 10-K report for 2009; see Page 78.

Using that figure, operating revenue in this year's third quarter was actually down by more than $24 million from last year.

See for yourself
Following is a screenshot of this morning's statement, showing third-quarter revenue last year at $1,312,136,000:

Yet; here's last year's 10-Q, showing the higher figure of $1,336,583,000 for that year's third-quarter; click on either image for a bigger, more readable view:

Can any of you financial experts explain what's going on? Please post your replies in the comments section, below. To e-mail confidentially, write jimhopkins[at]gmail[dot-com]; see Tipsters Anonymous Policy in the rail, upper right.

Sponsors | I've just received a $25 contribution!

Thanks and a shout-out to my newest donor, in Iowa!

I'm trying to earn $4,000 quarterly, mostly through sponsorships of $5 per reader, plus limited ad sales. Please use the "Donate" tool in the green rail, upper right. Or mail cash/checks payable to: Jim Hopkins, 584 Castro St. #823, San Francisco, Calif., 94114-2594.

Earnings | Highlights of digital revenue in Q3

From today's third-quarter financial report, here's what Gannett said about the crucial category of digital sales:

Digital revenues in U.S. Community Publishing were up 10.2% in the quarter due to gains in virtually all categories of advertising. USA Today digital advertising increased 35.1% reflecting significantly higher national advertising. (I believe this may be the first time that GCI has broken out USAT's digital growth.)

Digital Segment operating revenues totaled $157.7 million compared to $143.0 million in the third quarter last year. The 10.3% increase reflects very high single-digit revenue growth at CareerBuilder as well as double-digit revenue growth at PointRoll. Digital operating expenses totaled $141.9 million. Excluding special items, operating expenses were $129.0 million in the quarter. As a result, segment operating income excluding special items was up 16.4%.

The digital segment includes results for CareerBuilder, PointRoll, ShopLocal, Planet Discover, Schedule Star and Ripple6.

Company-wide digital revenues, which include the Digital Segment and all digital revenues generated by the other business segments, were $255.7 million or 9.9% higher compared to the third quarter in 2009. Company-wide digital revenues were over 19% of total operating revenues.

Urgent: GCI posts 36% jump in third-quarter profit; but Wall Street is disappointed: Shares plunge 8%

The following post is based mostly on an Associated Press story:

Gannett reported a 35.5% rise in third-quarter earnings today, helped by a jump in broadcasting revenue.

A recovering auto industry and political campaigns heading into midterm elections poured money into Gannett's 23 television stations. That, plus an increase in advertising on the company's websites, helped the biggest U.S. newspaper publisher halt declining revenue for the first time since 2006.

Excluding the effect of currency swings, Gannett said overall revenue would have actually grown by close to 1%.

Investors so far don't like what they see: GCI shares recently traded for $12.91, down $1.18, or 8.4%.

Broadcast revenue offset another decline at Gannett's newspapers, which include USA Today and more than 80 other dailies. The continued decline in print advertising revenue — down 5.1% in the quarter — is not a good sign for other publishers. The New York Times Co. and McClatchy Co. report results next week and neither have TV stations to lean on.

But Gannett's net income climbed to $101.4 million, or 42 cents per share, in the three months ended Sept. 26. That's up from $73.8 million, or 31 cents per share, a year earlier.

Excluding items, its earnings totaled 52 cents per share, while analysts expected 50 cents a share, according to a Thomson Reuters survey.

Revenue was flat at $1.31 billion. Analysts expected $1.33 billion.