USA Today parent Gannett's stock rises after earnings reported, dividend suspended
Shares of USA Today parent Gannett Co. rallied 4.7% after the media company reported a first-quarter loss that widened and revenue that more than doubled, as a result of the New Media Investment Group Inc.'s acquisition of Gannett, which was completed in November. The company said it is suspending its dividend to preserve liquidity amid the economic disruption and uncertainties caused the COVID-19 health crisis. The net loss was $80.2 million, or 61 cents a share, after a loss of $9.1 million, or 15 cents a share, in the year-ago period. Revneue rose 144.8% to $948.7 million. There were not enough FactSet estimates to provide a consensus. On a pro forma basis, revenue would have declined 10.0%, with print advertising revenue down 21.2%, digital advertising and marketing services revenue rose 1.7% and circulation revenue fell 7.5%. "The impact on our business from the pandemic came fast and is significant," said Chief Executive Michael Reed. "We have also moved aggressively to manage through the current economic crisis by taking measures to preserve and increase liquidity and financial performance, including further cost reductions, limits on capital expenditures, and the suspension of our quarterly dividend." The stock has plunged 83.2% year to date through Wednesday, while the S&P 500 has lost 11.8%.
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