Gannett Faces Challenges as Sales Forecast is Cut

Shares of Gannett, publisher of USA Today, experienced a decline in value following the company's announcement of a reduced sales forecast for the full year and a drop in third-quarter revenue.

Share Value Decreases

In morning trading, Gannett's stock fell by 17% to $1.91. This year alone, shares have decreased by 6%.

Third-Quarter Revenue Decline

Gannett reported third-quarter revenue of $652.9 million, indicating a 9% decrease compared to the previous year. However, the company managed to narrow its loss from 39 cents per share to 2 cents per share over the same period.

Lowered Revenue Outlook

Gannett now anticipates revenue for the full year to range from $2.65 billion to $2.67 billion. This marks a downward revision from the company's previous revenue outlook of $2.75 billion to $2.80 billion.

Positive Indicators

Despite the challenges, Gannett highlighted some positive aspects in its report. The average revenue per digital user increased by 14% compared to the previous year, reaching $6.82. Furthermore, digital-only paid subscriptions saw a slight uptick of 0.7% sequentially in the third quarter, following declines in the first two quarters of the year.