Gannett Leads The Industry

gannett_logo_blueRevenue and Circulation

Gannett is a publicly traded company which separated from the original owner in July of 2015. Since then they have grown steadily and invested in innovative projects like the Rape Kit project. Gannett owns 92 companies in the US and the UK including USA Today. Gannett has a combined reach of over 100 million monthly views through 112 daily publications. Digitally, Gannett has 1.1 billion cross-platform pageviews, which is due to their digital-first platform. Gannett’s advertising revenue is a mixture of 77 percent print revenue and 23 percent digital revenue, which makes up 56 percent of their total revenue. The remaining 44 percent of their total revenue comes from circulation and other sources. Over the last year Gannett saw national digital advertising growth of 32 percent. Gannett had over $677 million in digital revenue in 2015. As of December 2015, Gannett has zero funded debt, $200 million in cash, and a 4 percent dividend yield.

Audience

Gannett as a whole has an audience made up of people from every walk of life. With such a broad reach, their audience is not limited to a specific group of people. This is one of the reasons why Gannett is so successful. Their audiences are made up of people who respond well to the digital-first model, as they have been very successful following the model.

Would I buy?

Absolutely! If I had the means to buy Gannett I would do it. Sure, there are risks involved when purchasing a company of this magnitude but it would be the opportunity of a lifetime.

Would I work for Gannett?

I would love to work for Gannett, whether it be for Gannett or any of its additional companies. They have proven to be successful, especially in 2015 which means that they are obviously doing something right.

SWOT Summary

Strengths – Gannett is great at acquiring smaller companies and encouraging innovation

Weaknesses – They have so many companies under their wing that it is difficult to maintain and manage consistency throughout the company.

Opportunities – Gannett’s success so far has given them the opportunity to continue to thrive and grow. The success of the Rape Kit project has also open an opportunity for Gannett that is outside of the mass media industry.

Threats – Their competition like TRONC pose a threat because they have a similar target market.

Longevity

I believe Gannett will continue to be a long-standing company. They will continue to grow, even in the midst of a “news crisis” so to speak. Gannett is a strong company and will continue to innovate with time to make sure that it stays one step ahead in the industry. If Gannett follows

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s