Projo’s Parent Company Gannett Sees 45% Print and 26% Digital Decline in Revenues in 2nd Quarter

Projo’s Parent Company Gannett Sees 45% Print and 26% Digital Decline in Revenues in 2nd Quarter

The largest newspaper group in the United States -- Gannett -- saw a massive decline in revenue in the 2nd quarter in 2020.

Gannett, which owns the Providence Journal, the Newport Daily News, and hundreds of other daily and weekly newspapers across the country, has been laying off reporters and editors, including two high profile members of the Journal’s newsroom -- sports columnist Kevin McNamara and editorial page editor Ed Achorn.  

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According to the company's financials:

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“Same store pro forma circulation revenues decreased 13.6% in the second quarter, partially stemming from a reduction in volume of our single copy and home delivery sales, reflecting the impact of COVID-19 pandemic on businesses that sell single copies of our publications as well as general industry trends,” said the company.

“Print advertising revenues totaled $187.9 million in the second quarter. Same store pro forma print advertising revenues decreased 45% compared to the prior year reflecting the negative impact from the COVID-19 pandemic,” according to the quarterly report.

And digital advertising for the newspaper giant was crushed. “Digital advertising and marketing services revenues were $104.4 million in the second quarter. Same store pro forma digital advertising and marketing services revenues decreased 26.7% versus the prior-year period, reflecting the impacts from the COVID-19 pandemic beginning in the latter part of the first quarter which negatively affected digital revenues across each category,” said their statement.

Overall numbers were “Publishing segment revenues totaled $695.9 million in the second quarter. Circulation revenues totaled $342.6 million in the second quarter.”

“While the second quarter was significantly impacted by the COVID-19 pandemic, our revenue was in line with the guidance we shared on our last earnings call and our EBITDA performance benefited from our expense reduction efforts," said Michael Reed, Gannett Chairman and Chief Executive Officer. 

The company said it realized more than $160 million in “synergies.” Newsroom cuts were reported at papers across the country.

According to Gannett:

Implemented cumulative measures by the end of the second quarter that will result in over $160 million in annualized savings.

◦ Realized $41.2 million in savings in the second quarter.

◦ Expect to have implemented measures that will result in over $200 million in annualized savings by the end of the third quarter.

◦ Expect to realize $50 - $55 million in savings during the third quarter.

◦ Management remains highly confident in its ability to implement measures by the end of 2021 that are expected to result in $300 million in synergies.