Gannett reports print revenue continuing to decline, while digital revenue rose 10 percent
Newly installed CEO Gracia Martore got to deliver the bleak news today during Gannett’s earnings conference call: revenue is continuing to decline.
Gannett reported that while total revenue fell 3.5 percent to $1.27 billion, print revenue continue to decline at faster pace, down 5.3 percent to $917.8 million in the last quarter.
“In the Publishing segment, again, a bright spot was the solid increase in Digital revenues. Softening economic conditions however, both here and in the U.K., contributed to a decline in Publishing segment revenues of just over 5%,” Martore said in the conference call.
Gannett’s new CEO could offer investors some good news, digital continues to grow – 10 percent in the last quarter.
“Our commitment to multi-platform sales resulted in company-wide Digital revenues of almost $275 million. That was an increase of about 10% from the third quarter last year and represented 22% of total company-wide revenue,” Martore said. “Year-to-date, we’ve generated over $800 million in Digital revenue for the company, a 12% increase compared to last year.”
Martore, who served previously as President and COO, took over for Craig Dubow, who resigned due to health issues on October 6.
Investors continue to hammer Gannett’s stock. The stock fell 8.68% today to close at $9.99, down over 22 percent this year. In after hours trading the stock has edged back over $10 a share. Overall, Gannett still maintains a profit margin over 10 percent, and a market cap of $2.6 billion on revenue of $5.4 billion annually. To compare who an old media company like Gannett is valued by investors, it is interesting to compare it to a company like Apple that has a market cap almost four times higher than its annual revenue, or Microsoft which has a market cap over three times higher than its annual revenue.