Gannett Co., Inc
) reached a new 52-week high of $22.11 on Wednesday, Mar 20,
gaining impetus from the company's endeavors to diversify its
business model by adding new revenue streams in an effort to
adapt to the evolving face of the multiplatform media
This Zacks Rank #3 (Hold) media conglomerate eventually closed
at $22.07, recording a healthy return of 23.7% year to date. The
company currently trades at a forward P/E of 9.91x, a 29.1%
discount to the peer group average of 13.97x.
Alongside, companies like
The Kroger Company
) crafted new 52-week highs on Wednesday.
Gannett is poised to benefit from a rapidly changing business
model, like increasing digitalization, in order to keep itself on
the growth path. The company initiated a subscription based
model, commenced Digital Marketing Services in top markets, and
refurbished its iconic brand USATODAY to generate new advertising
and marketing revenue sources.
Gannett acquired Mobestream Media and BLiNQ Media to enhance
its Digital Marketing Services. The company has successfully
deployed a subscription based model in 78 local publishing
markets. Gannett's CareerBuilder is growing by leaps and bounds,
and its acquisition of Economic Modeling Specialists Intl. proved
to be a game changer for this online job portal.
Moreover, Gannett has been realigning its cost structure and
streamlining its operations to increase efficiencies, and in turn
the operating performance.
Going forward, Gannett's long-term objective includes
returning $1.3 billion to investors and annual revenue growth of
2% - 4% by fiscal 2015. Management expects U.S. Community
Publishing subscription revenue to be up by 25% by the end of
2013, which translates into a contribution of approximately $100
million to operating profit. Retransmission consent fees for 2013
are expected between $135 million and $140 million.
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