Amid the secular and cyclical slowdown in print advertising, McClatchy Company (MNI), the third largest newspaper company in the U.S. and the publisher of 80 newspapers including the Miami Herald and Sacramento Bee, reported second quarter 2009 results.  The company is facing the same dramatic decline in advertising revenue, as the rest of the newspaper industry, reflecting the deepening economic recession. To combat the downturn, management undertook cost-cutting initiatives, focused on building internet operations and reduced debt load. McClatchy lowered its headcounts by 15%, or 1,600 employees, cut executive pay, suspended 401K matching contribution and dividend. The company was able to lower its cash expenses by 29.3% and operating expenses by 28.1%.  Consequently, EPS increased 42.9% year over year to $0.30. On a reported basis, EPS more than doubled to $0.50. Total revenue, however, plummeted 25.4% to $365.3 million, as the fall in total advertising revenue ...

Journal Communications (JRN), a diversified media company with publishing, broadcasting (TV & radio), printing, and direct marketing businesses, recently reported another dismal quarter of plummeting revenue and plunging EPS amid a turbulent economic environment.  The company is feeling the brunt of a slump in advertising demand. Total advertising revenue at the publishing division declined 28.3% year over year to $32.1 million in the second quarter of 2009, although circulation revenue stabilized (up 3.8%). The company saw a sharp fall in automotive advertising (down 56% in the daily newspaper and 49% in broadcasting), the sector that has been hit most by the global recession.  Total revenue tumbled 21.9% to $109.4 million, and as a result, EPS declined more than 50% to $0.07 – in line with our estimate, but ahead of market expectation of $0.03. On a reported basis, however, the company reported net loss per share ...

Shares of Gannett Co. (GCI) surged 28.9% to close at $4.50 on Jul 15, 2009. The upbeat sentiment in the stock was due to the company’s stronger-than-expected second-quarter results, due to cost-cutting initiatives such as job cuts, salary reduction, furloughs and lower newsprint expenses. The company is laying off nearly 1,400 employees or about 3% of its headcount.

Gannett reported EPS of $0.46, excluding special items, surpassing the Street estimate of $0.37. Although, EPS fell more than 50% year over year, it increased sharply by 84% on a sequential basis. On a reported basis, the company's EPS was $0.30, compared to a net loss per share of $10.03 in the prior-year quarter.

Total revenue, however, tumbled 17.8% to $1,412.6 million due to sustained weakness in the U.S. and U.K. economies. The turbulent economy continues to hamper advertising revenue. Gannett's Publishing segment revenue declined 25.8% to $1,117.3 million as newspaper advertising

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