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Zacks Industry Outlook Highlights: Gannett Co, McClatchy Company, Rubicon Project, TEGNA and News

Zacks Equity Research
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For Immediate Release

Chicago, IL – October 16, 2017 – Today, Zacks Equity Research discusses the Industry: Publishing, Part 2, including Gannett Co., Inc. (NYSE: GCI – Free Report), The McClatchy Company (NYSE: MNI – Free Report), Rubicon Project, Inc. (NYSE: RUBI – Free Report), TEGNA Inc. (NYSE: TGNA – Free Report) and News Corporation (Nasdaq: NWSA – Free Report).

Industry: Publishing, Part 2

Link:  https://www.zacks.com/commentary/132130/will-the-new-game-plan-lead-publishing-stocks-to-growth

Newspaper companies are transforming their business models to better position themselves in a multi-platform media universe. According to industry experts, these companies are focusing on mobile devices, online advertising based on user experience and personalized content to lower their dependence on traditional advertising revenues.

The companies are also streamlining their cost structure, strengthening their balance sheet and restructuring their portfolio to offset declining revenues and shrinking market share. This has compelled many newspaper companies to undertake cost-cutting measures such as headcount trimming, pay cuts, furloughs, voluntary retirement programs and closure of printing facilities. Publishing companies have been offloading assets that bear no direct relation to the core operations.

Let’s take a look at what’s happening in the publishing industry and how newspaper companies are adapting to the changing face of the media in the race for survival.

Industry Game Plan

Newspaper publishing companies are diversifying their revenue base. They are striving to expand their presence in broadcasting and digital products with the aim of lowering dependency on soft print media business and traditional advertising, thereby reducing susceptibility to economic conditions. In line with this, Gannett Co., Inc. (NYSE: GCI – Free Report), The McClatchy Company (NYSE: MNI – Free Report) and others  joined forces to form a new national advertising network – Nucleus Marketing Solutions – with the goal to assist advertisers in reaching out to a mass audience.

In July 2016, Nucleus Marketing Solutions collaborated with the Rubicon Project, Inc. (NYSE: RUBI – Free Report), which operates one of the largest advertising marketplaces in the world. Publishers via Nucleus make mobile, display and video inventory accessible to advertisers on Rubicon Project's technology platform.

Newspaper publishing companies are even separating their broadcasting and digital properties from the sluggish print business. TEGNA Inc. (NYSE: TGNA – Free Report) was formed after the parent company, Gannett spun off its Broadcasting and Digital and Publishing units into two separate entities. The publishing division retained the name of the parent company, Gannett Co., Inc.

This is not the first time that any media company has spun off its publishing unit. Earlier, News Corporation (Nasdaq: NWSA – Free Report) and Time Warner also separated their broadcasting and digital properties from their sluggish print business.

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