Gannett Co. Inc.GCI

Stock Research and Analysis

by Tom Corbett

An expansive collection of newspapers, including the flagship USA Today, Web sites, and various multimedia interests makes Gannett the nation's largest newspaper publisher, and an attractive choice for advertisers seeking to reach a broad national audience. Read more

Bulls Say

With daily circulation of more than 2 million, USA Today dwarfs all competitors in its ability to reach a mass readership on a daily basis. Its revenue accounts for 18% of the industry total.

Gannett's 23 television stations collectively reach more than 20 million U.S. households. Gannett's TV business accounts for about 11% of revenue and has been holding steady the last three years.

Gannett has taken steps to reposition itself as a 24/7 multimedia information clearinghouse, buying stakes in online ad companies and investing in mobile media platforms. Read more

Bears Say

Ad revenue from Gannett's core publishing business is declining at an accelerating pace. For three months ended December 2008, total publishing ad sales declined 23%, compared with a 12% decline a year earlier.

More than 80% of Gannett's revenue comes from print ad and circulation sales, both of which are in long-term decline.

Despite rapid growth, the Internet still accounts for less than 10% of total newspaper ad spending. Even if growth accelerates, online ads are years away from replacing the lost revenue from print ads.

Because classified advertising accounts for more than one fourth of Gannett's revenue, the company is vulnerable to downturns in specific categories of ad spending, especially job listings, automotive, and real estate. Read more

Strategy

Gannett is fighting back against the persistent decline in circulation and ad revenue from its print operations by attempting to reinvent itself as a multimedia-based digital information clearinghouse. Read more

Management

Craig A. Dubow became president and CEO in 2005 when Douglas H. McCorkindale stepped down; Dubow has since become chairman, as well. Excluding changes in certain retirement plans, Dubow received a total compensation package of $7 million in 2007, a package at the high end of the industry range. Read more

Profile

Gannett is the largest newspaper publisher in the United States. Its flagship publication, the iconic USA Today, is the country's largest daily newspaper, with a circulation of 2. Read more

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