Gannett, owner of USA TODAY and local news operations in 45 states, reported Thursday that it would undertake a “significant cost reduction program” amid a challenging economic backdrop marred by soaring inflation rates, labor shortages and price-sensitive consumers.
The media company reported a net loss of $53.7 million in the second quarter, compared with a net income of $15.1 million the same period a year earlier. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) totaled $50.9 million, down 56% from the prior-year quarter, with declines driven by a decline in print revenue and inflationary pressures.
“We are not satisfied with our overall performance in the second quarter,” Gannett CEO and Chairman Michael Reed said in a release, noting the results reflect “industry-wide headwinds” in digital advertising and tightening across the economy.
“Like many companies across many industries, we experienced a very challenging second quarter resulting from the difficult economic environment and rising pressures on the consumer,” Reed said on a company earnings call Thursday morning. “Our weakening consumer demand led to larger-than-expected decline in print subscription revenues, effectively pulling forward expected print revenue losses.”