Posted on 04/12/2006 8:19:19 AM PDT by Grampa Dave
AP Gannett's Profit Falls 11.5 Percent in 1Q Wednesday April 12, 10:25 am ET Newspaper Publisher Gannett's Profit Drops 11.5 Percent in 1Q; Shares Fall 27 Cents
NEW YORK (AP) -- Gannett Co., the largest newspaper publisher in the country, reported Wednesday an 11.5 percent decline in profit for its first quarter as the company began expensing stock options and recording costs from its new newspaper partnership in Detroit. Gannett earned $235.3 million, or 99 cents per share, in the thirteen weeks ending March 26, down from $265.7 million, or $1.05 per share, in the same period a year ago, which included 2 cents per share profit from discontinued operations.
The results were in line with the forecasts of analysts polled by Thomson Financial, and include a non-cash expense of 3 cents per share in the latest quarter from stock option expenses, which the company began recording in the first quarter as required by accounting rules.
Revenues rose 6.5 percent to $1.88 billion from $1.77 billion in the same period a year ago.
The increase was mainly due to the consolidation of the Detroit Free Press, which it acquired from Knight Ridder Inc. in August of last year and then combined into a partnership with The Detroit News, which MediaNews Group Inc. bought from Gannett.
Excluding the Detroit transaction other newspaper deals, Gannett's revenues would have edged down 0.5 percent in the quarter from the same period a year ago.
Gannett shares fell 27 cents to $58.55 in morning trading on the New York Stock Exchange. That is near the lower end of its 52-week range of $58.07 to $80.02.
The Philadelphia Inquirer just started giving Sunday-only subscribers the Saturday paper too.
"Not to mention that we get a lot of news the MSM wouldn't print at gunpoint.'
That is one of the main reasons their paid circulation numbers are going down.
Media General's profit fell, too
http://www.freerepublic.com/focus/f-news/1613616/posts
They are trying to boost the circulation numbers. In my experience it only takes a couple of calls saying "If that paper is still on my step (driveway) in an hour, I'm calling the police". I feel a little bad about making extra work for the delivery person who has to pick it up, but I won't put up with Gannett's tricks and they learn quick that I really, really don't their garbage on my step.
"The Philadelphia Inquirer just started giving Sunday-only subscribers the Saturday paper too."
I wonder what % of Phillie isn't capable of reading a free newspaper?
Civil Union announcements is the reason why my church called for a boycott, but I had pretty much quit reading it when they started that.
In the WSJ version of the Gannett story, there was this graf:
"Print-advertising revenue was "a bit weak," but Gannett offset this with "better-than-expected cost control" at the newspaper division, Paul Ginocchio, an analyst with Deutsche Bank, wrote in a note to clients. Deutsche Bank owns 1% or more of Gannett shares, and Gannett has been a client of the firm over the past year."
"better-than-expected cost control" translated: LAYOFFS...
Sinking readership and revenue, because of biased and mediocre reporting, is finally taking its toll.
Maybe they should stop publishing "newspapers" and start producing toilet paper.
The toilet paper they would produce would be as rough and irritating as the newspapers are now.
"Civil Union announcements is the reason why my church called for a boycott, but I had pretty much quit reading it when they started that."
Interesting comment. A friend, who tired of the pictures of gays getting turned down for marriage in our county, told the local editor, that she was sick of these front page stories. Also, the first time the rag ran a picture of two gays getting married or an announcement, she and her BIL would stop advertising and subscribing.
Shortly after this confrontation, the front page pictures disappeared and there have never been any announcements.
In the paid obits columns, you have to read between the lines to figure out if the deceased was gay and in a so called long term relationship.
What most people don't understand is the advertising business is its worst in a boom. No matter what the media says we are in an economic boom with 4.7 percent unemployment.
What does that mean? It means sales are good. In good economic times goods move off the shelves with little effort. Stores don't need to advertise. When the economy starts to falter, stores realize they have to do something to move the inventory.. so they increase advertising.
As the economy gets worse and worse they have to spend more on advertising to move goods.
As the economy starts to pick up and goods start to move again, stores cut advertising budgets.
The bottom of a recession is a good time to be in the advertisting business.
The lefties of the WSJ are doing a little Enroning and Arthur Andersening for their lefty buddies at GCI.
Thanks for posting those trend line charts.
"Maybe they should stop publishing "newspapers" and start producing toilet paper."
They could save a lot on salaries and ink print.
First the bad news: Iran is going nuclear; then the good news: fishwraps are going broke.
Now for the really bad news.
The MSM of America and the world will try to tie America's and Israel's hands in this survival issue.
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