Gannett reaped $31 in EBITDA for every $100 sales in 2005 but its operating profits were only $20 for every $100 in revenues in 2009. Most companies would be tickled to have EBITDA of 20%, but that number looks fairly anemic when a business is accustomed to getting 31%.Keep in mind that we’re talking about operating income, which shows that Gannett’s media businesses are still very profitable. However, if you take into account extraordinary, one-time charges against income, the picture becomes a bit bleaker. The company incurred restructuring costs in its recent downsizing that led it to an overall loss of $4.71 billion last year, but those cuts will help make the company more profitable in the future. Also, keep in mind that the profit measure we are using is return on revenue, which topped out at $8 billion in 2006 and have plunged 30.1 percent to $5.6 billion in 2009.
When is it time to deny media access and coverage?
6 months ago