Gannett reported a net loss of $54.1 million during July, August and September of this year and still anticipates a loss of $60 million to $70 million after laying off about 400 employees, not filling hundreds of open positions and announcing “transformative” cost cutting.
The third quarter earnings were worse than estimates offered by analysts. This is Gannett’s fourth consecutive losing quarter, with revenues dropping by 10.3%. They lost $53.77 million in the second quarter of this year.
In an earnings call today, Gannett said they fell far short of their 2021 goal to reach 10 million digital-only subscribers.
Still, Gannett’s top executive is optimistic.
“Our future is bright,” said Mike Reed, the Gannett CEO.
The national newspaper chain, which owns nine dailies in New Jersey, said they would continue to realize cost savings by “increased outsourcing of certain business tasks.”
They have already announced mandatory furloughs in December, a suspension of 401(k) matches, and a plan to offer retirement packages.
Gannett will also sell about $75 million of assets this year.
Stock prices in Gannett opened a $1.50 per share this morning, down from $6.05 one year ago.
In New Jersey, Gannett owns the Bergen Record, New Jersey Herald, Daily Record, Courier News, Home News Tribune, Asbury Park Press, Burlington County Times, Courier-Post and the Daily Journal.
The Record was formerly owned by Malcolm Borg, who faced a civil lawsuit in the 2010s for sending pornographic emails to a female employee. The matter was settled and both parties entered into a non-disclosure agreement.