Gannett said this morning that fourth-quarter profit fell to $116.9 million, or 49 cents a share, from $174.1 million, or 72 cents a share, in the year-ago period, according to this Marketwatch story.
The media company's adjusted profit fell to 72 cents a share, from 83 cents a share, while revenue dropped 5% to $1.39 billion. Wall Street analysts expected GCI to earn 68 cents a share on revenue of $1.39 billion, according to a survey by FactSet Research.
Investors were disappointed. GCI recently traded for $14.06, down $1.16, or 7.6%.
Overall revenue fell 5.1% during the quarter from the prior year, the worst quarterly decline throughout last year. Publishing advertising -- principally from the U.S. newspapers -- tumbled 7.1%. (Spreadsheet shows quarterly changes by division.)
"Excluding even-year political advertising, core broadcast revenues were up strongly in the 2011 fourth quarter," the company said in a statement. "We are positioning for growth in print and digital media through new subscription models delivered across platforms, capturing opportunities in adjacent businesses, and continuing to focus on operational efficiencies."
The media company's adjusted profit fell to 72 cents a share, from 83 cents a share, while revenue dropped 5% to $1.39 billion. Wall Street analysts expected GCI to earn 68 cents a share on revenue of $1.39 billion, according to a survey by FactSet Research.
Investors were disappointed. GCI recently traded for $14.06, down $1.16, or 7.6%.
Overall revenue fell 5.1% during the quarter from the prior year, the worst quarterly decline throughout last year. Publishing advertising -- principally from the U.S. newspapers -- tumbled 7.1%. (Spreadsheet shows quarterly changes by division.)
"Excluding even-year political advertising, core broadcast revenues were up strongly in the 2011 fourth quarter," the company said in a statement. "We are positioning for growth in print and digital media through new subscription models delivered across platforms, capturing opportunities in adjacent businesses, and continuing to focus on operational efficiencies."
I was thinking about all of the very possitive comments about Gracia when she took the helm--and how things would be different. Not am impressive start, Gracia!
ReplyDeleteYes, 9:36, because Martore, who wasn't even named CEO until after the 4th quarter had started, was magically going to turn things around overnight. Whether she ultimately succeeds or fails remains to be seen, but uninformed, small-minded comments like yours are a perfect example of everything that is wrong with this blog.
ReplyDeleteMartore's been running the show for years - her installation as CEO was a vote of confidence from the board for her work under Dubow and as backup CEO during Dubow's medical leave. These results had to be expected.
ReplyDeleteYeah 9:48 she had absolutely nothing to do with running the company prior to that. You keep waiting for her to work her magic let me know how that turns out. Small minded is the company that allows people to micro manage, promotes incompetent yes people and tramples anyone who questions them.
ReplyDelete9:48 am Did you notice how familiar the "We are positioning..." statement was?
ReplyDelete9:48 a.m. I forgot that she did move very quickly with adding a large number of VPs. Is that part of the operating efficiencies she refers to?
ReplyDeleteI thought making their per-share projection would make Wall Street happy, but the stock is down 7-8% in early trading.
ReplyDeleteUSA Today is sucking the very life out of Gannett. No surprise there. Someone needs to sew the holes in Maryam Banikarim and David L. Hunke's pockets.
ReplyDeleteJohn I think wall street is tired of the same happy bs getting spewed as the revenues fall. The future is digital, we are really excited, blah, blah, blah. I'm assuming these people read the paper and visit the websites and see the product sucks and realize at this rate the future is bleak.
ReplyDeleteMiss me yet?
ReplyDeleteCraig.
Shareholder Money, get away
ReplyDeleteGet a good return another way
And you’re O.K.
Gannettbrass, they’re a gas
Grab their cash with both hands
And build a stash.
New car, caviar, use the jet to getaway
Now they’ll go to the Superbowl
Falling profits means they’ll cut away
Add another furlough day
Shareholder Money, get away
Make your jack another way
And you’re O.K.
This is the only number you need to look at and see that it is getting worse for Gannett by the quarter:
ReplyDeleteEBIT for Q4 2010: $309mm
EBIT for Q4 2011: $212mm
A DIFFERENCE of $97mm!!! That is a 31% drop in QUARTERLY earnings. Get ready for some severe layoffs, furloughs, pay reductions, benefit reductions and wholesale slash and burn Martore style!!!
EBIT = Earning before Interest and Taxes. This is their real earnings.
Folks, this is not good. Too many fixed costs in this business. The only silver lining is that 2012 will bring the Olympics and election ads to the highly profitable broadcast business.
Everything else in this earnings report had brackets around the numbers to represent the decline in their core publishing and broadcast business. Digital is still trading dollars for pennies now. Deal Chicken is NOT the solution and it is sad that they believe in that disaster.
They will be breaching their debt covenants any quarter now and that will result in a fire sale!
Revenue for 2006 = $8.1 BILLION
ReplyDeleteRevenue for 2011 - $5.2 BILLION
Included in this is the Pointroll and CareerBuilder revenues that are fully consolidated in 2006 and 2008 respectively. So the decline is even worse!!!
A loss in revenue of almost $3 BILLION in five years with Careerbuilder, pointroll and shop local adding $900 million in top line revenue to 2011's number. So, it is more like a loss of $4 BILLION in five years.
At teh rate they are going, the company will be bankrupt in the next 3 years!
You want to see a real beatdown of a newspaper company? Look at this piece on Media General, another company that I once worked for as a reporter:
ReplyDeletehttp://bit.ly/wpuKN2
Here's an excerpt that will sound familiar to Gannett Blog readers:
"So any investor in Media General must immediately realize that Media General’s management is simply looters, transferring millions from investors, creditors, and employees while providing nothing but strategic and financial failure."
"Release the (layoffs) Kraken."
ReplyDeleteWord verification: poloi
Now let's see the executive bonus figures for running the Costa Concordia, I mean the SS Gannett, aground. I wonder if the leaping Cruise Ship Capt. got a bonus for his last work assignment.
ReplyDelete