Gannett (GCI) Shares Rally as Co. Expecting Tailwinds in Q3, Q4
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Price: $24.96 --0%
EPS Growth %: +8.8%
Financial Fact:
Publishing advertising: 526.5M
Today's EPS Names:
CLC, FNSR, MU, More
EPS Growth %: +8.8%
Financial Fact:
Publishing advertising: 526.5M
Today's EPS Names:
CLC, FNSR, MU, More
Trade GCI Now!
Shares of Gannett (NYSE: GCI) have rallied sharply in Thursday's afternoon session as the company issued a mid-day update. The stock is now up about 3.5 percent to $13.50.
The company said its President and CEO Gracia Martore and members of the company's senior management team reported on Gannett's progress in executing the company's strategic growth plan at its annual presentation to the Media and Entertainment Analysts of New York.
Martore reaffirmed the company's expectation of 2%-4% annual revenue growth and greater earnings growth by 2015. She also reconfirmed that the company is on a path to return more than $1.3 billion to shareholders by 2015 through its previously announced $0.80 per share dividend and expanded share repurchase commitment of $300 million over the next two years.
Bob Dickey, president of U.S. Community Publishing ("USCP"), provided an update on second quarter revenue trends and discussed progress in implementing the new all-access subscription model. The model, which was operational in nearly half of USCP markets, reflects the full value consumers place on multi-platform access to Gannett's content. USCP circulation revenue is expected to grow approximately 25% by the end of 2013 and the new model is expected to contribute approximately $100 million to operating profit in 2013.
Larry Kramer, president and publisher of USA TODAY, outlined plans to leverage Gannett's scale and resources to reimagine USA TODAY, which celebrates its 30th anniversary in September, as a stronger, more influential news brand. The development and expansion of USA TODAY Sports Media Group and Travel Media Group are two early reflections of this ongoing effort to enhance and reintroduce USA TODAY-branded content and marketing tools to consumers and advertisers on every platform.
Gannett Digital Ventures President Jack Williams provided an update on Gannett Digital Marketing Services ("DMS"), which offers local clients a comprehensive product suite that includes daily deals, search engine marketing and optimization, social media marketing, website design, and e-mail campaigns. DMS, which thus far has been rolled out in all Gannett Broadcasting markets and 35 USCP markets, is expected to generate revenue of $75 million-$100 million in 2012. Williams also reviewed CareerBuilder's strong performance to-date, including its sustained revenue growth in the U.S. in the face of an uneven labor market, as well as growth of its international operations.
David Lougee, president of Gannett Broadcasting, said Broadcasting has been performing strongly in the second quarter as a result of retransmission and advertising revenue gains. Lougee also indicated that politically related and Olympic spending would provide significant tailwinds for Gannett Broadcasting for the third and fourth quarters of 2012.
Senior Vice President and Chief Digital Officer David Payne discussed the progress on the work to re-launch Gannett's digital and mobile properties by the end of 2013. He noted that the company's Atlanta-based Video Production Center, an important component of the digital strategy, is now operational and has already served over two million videos across Gannett.
Gannett reaffirmed that initiative investments being made in the first half of 2012 are expected to positively impact results in the second half and provide an even more significant impact in 2013 and beyond. Despite initiative spending of $30 million and additional pension expense of $4 million in the second quarter, and excluding special items, the company expects total second quarter expenses to be in line with the second quarter of 2011. Including the impact of those two factors, and based on second quarter trends and expectations, which include Broadcasting segment revenue growth of 10%-11%, Publishing segment revenue declines of 5%-5.5%, and company-wide digital growth of 12%-13%, the company is comfortable with the current First Call consensus of second quarter earnings per share.
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The company said its President and CEO Gracia Martore and members of the company's senior management team reported on Gannett's progress in executing the company's strategic growth plan at its annual presentation to the Media and Entertainment Analysts of New York.
Martore reaffirmed the company's expectation of 2%-4% annual revenue growth and greater earnings growth by 2015. She also reconfirmed that the company is on a path to return more than $1.3 billion to shareholders by 2015 through its previously announced $0.80 per share dividend and expanded share repurchase commitment of $300 million over the next two years.
Bob Dickey, president of U.S. Community Publishing ("USCP"), provided an update on second quarter revenue trends and discussed progress in implementing the new all-access subscription model. The model, which was operational in nearly half of USCP markets, reflects the full value consumers place on multi-platform access to Gannett's content. USCP circulation revenue is expected to grow approximately 25% by the end of 2013 and the new model is expected to contribute approximately $100 million to operating profit in 2013.
Larry Kramer, president and publisher of USA TODAY, outlined plans to leverage Gannett's scale and resources to reimagine USA TODAY, which celebrates its 30th anniversary in September, as a stronger, more influential news brand. The development and expansion of USA TODAY Sports Media Group and Travel Media Group are two early reflections of this ongoing effort to enhance and reintroduce USA TODAY-branded content and marketing tools to consumers and advertisers on every platform.
Gannett Digital Ventures President Jack Williams provided an update on Gannett Digital Marketing Services ("DMS"), which offers local clients a comprehensive product suite that includes daily deals, search engine marketing and optimization, social media marketing, website design, and e-mail campaigns. DMS, which thus far has been rolled out in all Gannett Broadcasting markets and 35 USCP markets, is expected to generate revenue of $75 million-$100 million in 2012. Williams also reviewed CareerBuilder's strong performance to-date, including its sustained revenue growth in the U.S. in the face of an uneven labor market, as well as growth of its international operations.
David Lougee, president of Gannett Broadcasting, said Broadcasting has been performing strongly in the second quarter as a result of retransmission and advertising revenue gains. Lougee also indicated that politically related and Olympic spending would provide significant tailwinds for Gannett Broadcasting for the third and fourth quarters of 2012.
Senior Vice President and Chief Digital Officer David Payne discussed the progress on the work to re-launch Gannett's digital and mobile properties by the end of 2013. He noted that the company's Atlanta-based Video Production Center, an important component of the digital strategy, is now operational and has already served over two million videos across Gannett.
Gannett reaffirmed that initiative investments being made in the first half of 2012 are expected to positively impact results in the second half and provide an even more significant impact in 2013 and beyond. Despite initiative spending of $30 million and additional pension expense of $4 million in the second quarter, and excluding special items, the company expects total second quarter expenses to be in line with the second quarter of 2011. Including the impact of those two factors, and based on second quarter trends and expectations, which include Broadcasting segment revenue growth of 10%-11%, Publishing segment revenue declines of 5%-5.5%, and company-wide digital growth of 12%-13%, the company is comfortable with the current First Call consensus of second quarter earnings per share.
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