
Gannett Looks to Local Content Rebound
NEW YORK (
) --
Gannett
(GCI) - Get Report
is counting on strong local market content to fuel its fires in 2011.
"We are focusing on deepening our valuable local content," chairman and CEO Craig Dubow said while offering Gannett's outlook for next year during the 38th annual UBS media conference today. "The keys to success in these local markets is fully engaging consumers and connecting them to our advertising customers."
Dubow said the company is posed to post strong results for 2010, after
its third-quarter earnings rose 37.5%
to $101.4 million, or 42 cents per diluted share, driven by a 22.3% gain in its broadcasting segment revenues. While its publishing segment suffered a 4.8% drop in revenue during the third quarter, management still expects to see significant growth in 2011.
"We are a stronger company now than we were just twelve months ago," he said. "We see a great deal of promise in each of our businesses and are positioned to act on new opportunities that will drive our future progress and growth."
Bob Dickey, U.S. community publishing president, said the company believes strong local content helps it retain community publication readers while allowing it to "capture new digital advertisers."
"Advertising trends are improving at the local level in many segments because of the changes put into place," Dickey said. "Consumers value our content, trust our brands and we continue to deliver improved products and services across all the platforms available to us."
In 2010, Dickey said that 31 community newspapers posted gains in their Sunday circulation, driven by a push for local news content and promotions. Local advertising is seeing a strong recovery and the company will continue to profit from the healthier market.
Gannett president and COO Gracia Martore said that the printing segment will be faced with increasing domestic newsprint prices in 2011, which are expected to rise in the mid to high teen percentage range.
"We view the health of the economy to be reasonable yet still a bit fragile," Martore said, reporting that the company estimates its fourth quarter earnings will come in at the high end of the 72 cents to 82 cents range.
Gannett shares are up more than 3% over the past year and are up about 3.45% today to around $15.90.
-- Written by Theresa McCabe in Boston.
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