PROVIDENCE – Gannett Co. lost $436.9 million in the second quarter of 2020, or $3.32 per diluted share, as it was heavily impacted by the COVID-19 pandemic, the company reported on Thursday.
Gannett earned $2.8 million one year prior, or 5 cents per diluted share and an $80.2 million loss in the first quarter of 2020, or 61 cents per diluted share.
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Revenue totaled $767 million, an increase from $464.4 million one year prior. On a pro forma basis, accounting for the New Media Investment Co.’s acquisition of Gannett, the combined entity would have had a revenue of $1.1 billion in the second quarter of 2019. The deal closed in November 2019.
Pro forma same-store sales declined 28% year over year for the quarter, including a 37.7% decline in same-store advertising and marketing revenue.
The company owns and operates several papers in the Rhode Island and Massachusetts market, including The Providence Journal, The Taunton Gazette, The Newport Daily News, The Cape Cod Times, The Herald News in Fall River, The Worcester Telegram and The Standard-Times in New Bedford.
Gannett said that its quarterly loss included $393.4 million of noncash goodwill and intangible impairment and $66.3 million of depreciation and amortization.
The company also noted it had reduced company expenses by $125 million through furloughs, pay reductions, workforce cuts and cancellation of nonessential traveling and spending. It also sold $7.5 million of real estate in the second quarter and expects to sell over $15 million in real estate in the third quarter to accelerate debt repayment.
“At no time in our history has the value of high-quality journalism been as clear as it is right now, at this intersection of a global pandemic and a nation in turmoil over systemic racism and inequality. Our journalists have worked tirelessly and doggedly to help keep our communities safe and informed, while exercising the crucial role of holding officials accountable,” said company Chairman and CEO Michael Reed. “As digital social platforms are overtaken by the spread of misinformation, our readers trust us to clear through the noise with credible, fact-based, fair reporting. And that is evidenced by audiences turning to us in record numbers since the beginning of the pandemic and very strong digital subscription growth.”
Chris Bergenheim is PBN web editor. You may reach him at Bergenheim@PBN.com.
