Gannett's 4Q losses signal turnaround

Posted by Lisette García on December 9, 2009 at 4:07 PM

The publisher of USA Today, as well as 80 other U.S. print newspapers, yesterday claimed to have gained ground in the losing economic battle faced by many western dailies worldwide, The Associated Press yesterday reported.

The optimistic pronouncement was delivered by Gannett Chief Financial Officer Gracia Martore at the UBS Media and Communications Conference, according to the company's press release. The preliminary report indicated that, while revenues were down 17 percent as compared with the same period last year, the company overall expects to show a profit for the most recent fiscal quarter.

Moreover, it heralded the losses - projected to be among the lowest in several cycles - as signaling a general turnaround in news publishing's fortunes, The Wall Street Journal yesterday reported.

Gannett's enthusiasm for the future follows similar statements by McClatchy Co. earlier this week, paidContent yesterday observed. Unlike Gannett, however, McClatchy has shown considerable return on its investment in digital advertising sales.

Gannett stock prices plunged on the news. Meanwhile, the company continues shedding workers, according to Barron's.