Long term ad revenue decline results in revision from “positive” to “stable”
Standard & Poor’s has issued the following statement regarding Gannett Co. Inc.:
— We expect the pace of newspaper publishing ad revenue declines will continue, and possibly accelerate over the near term, as a result of the weak economy and unfavorable fundamentals in the industry.
— We have affirmed all ratings on Gannett Co. Inc., including the ‘BB’ corporate credit rating.
— We have revised our outlook on Gannett to stable from positive, reflecting our view that any upgrade potential likely involves a longer time horizon than the next 12 months.
Although we expect Gannett to outperform most of its U.S. newspaper peers, especially those with a metropolitan focus, and maintain a good consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) margin, the company remains dependent on the newspaper industry, which we view as subject to long-term secular decline. The company’s TV broadcasting business faces mature long-term growth prospects, and operating performance remains sensitive to political advertising cycles. We believe these dynamics, together with increased risk of a return to recession, will cloud the revenue picture for at least the next 12-24 months.
In Arizona, the company’s holdings include the Arizona Republic; Tucsoncitizen.com; KPNX-TV 12, Phoenix; the Tucson Newspaper Partnership; and USATODAY print site, Phoenix. National divisions can be seen here.
The company’s stock chart can be seen here, while the Wall Street Journal’s Market Watch provides the latest real time quotes.
Read the complete Reuters News agency report here.
Less than two weeks ago Gannett Chairman and CEO Craig A. Dubow took a medical leave of absence as reported here.
In reading this S & P assessment, “We have revised our outlook on Gannett to stable from positive, reflecting our view that any upgrade potential likely involves a longer time horizon than the next 12 months,” all I can envision is the next downgrade. It will read “we have revised our stable outlook to gloom.”
This pathetic newspaper is contributing to its own demise each and every day with its lunatic left-wing editorial policy.
But the reality is that the Left wins in the end; they either succeed as a liberal rag or they have the satisfaction (sick as it may be)that they have destroyed a great traditional American newspaper. I’m giving away my age when I tell you that I can remember when it had more fact than fiction, which we all know was long, long ago.
You’d think the few journalists still working at the Republic and Channel 12 would rise up in fury when they see the instability their employer’s continual leftward lurching has brought them and their families. Their jobs are in a holding pattern, clutching on to the rim of the bowl before the final flush.
It makes perfect sense that Gannett CEO Craig Dubow took a reprieve on medical leave. He works for a sick industry.
[...] Arizona’s largest daily newspaper and its decades-long partnership with KPNX-TV 12. Recently the Gannett-owned station blatantly moved into the Gannett-owned newspaper’s [...]