Gannett and the New York Times Co. closed the books on 2014 with mixed results in earnings reports this morning.
For Gannett, strong growth in broadcast and its digital businesses more than offset revenue declines in both circulation and advertising at its newspapers, which will be spun-off into a separate company later this year.
At the New York Times Co., whose only business is its flagship paper and its digital and international extensions, continued growth in circulation revenues offset a small decline in advertising making for overall revenue growth of 0.7 percent for the year.
Net income fell to $30.3 million, about half the profit in 2013, on revenues of $1.59 billion. That is a margin of roughly 2 percent. CEO Mark Thompson said in a press release the company chose investments in digital expansion over maximizing profit but will “bear down on costs” in 2015 to improve results.
The Times finished the year with 910,000 paid digital subscribers.
At Gannett, a boom year in political advertising, an expanded roster of stations and retransmission fees from cable providers caused broadcast revenues to more than double compared to 2013. Digital businesses like Cars.com and CareerBuilder grew 22.8 percent for the year.
Publishing was a less happy story. Declines in ciruclation revenue at USA Today and its British newspapers outweighed gains at the company’s 80 community papers for an overall decline of 0.9 percent year to year.
Advertising revenues in publishing were down 5.8 percent for the year. National advertising was a particularly weak spot down 20.8 percent for the fourth quarter and 13.2 percent for the year.
(This post will be updated after management of both companies discuss results in conference calls with analysts later this morning).
from Poynter. http://ift.tt/1yB9Ozd