|PRINT | CLOSE WINDOW|
GateHouse Media Inc. reported an increased net loss for the fourth quarter and the full year, as revenues continued to decline.
The Perinton-based publisher reported a net loss of $4.6 million, compared to net income of $6.2 million during the same period a year ago. For the year, the company reported a net loss of $29.8 million, up from $21.6 million in 2011.
GateHouse logged fourth-quarter revenues of $125.6 million, down more than 11 percent from $142 million during the same period a year ago. Revenues for the full year were $491 million, down from $517 million in 2011.
While GateHouse’s digital revenue increased nearly 16 percent during the fourth quarter and nearly 27 percent for the full year, the company continued to see a decline in overall advertising revenue, which fell from $357.6 million in 2011 to $331.4 million last year.
CEO Michael Reed attributed the decline in revenues to a soft economic climate, among other factors.
“During 2012, we made significant progress along the path of transforming our organization into a truly multimedia company,” Reed said. “While we continued to make progress on reducing core operating expenses, some of these cost savings were invested in new growth initiatives, particularly new digital service offerings, which extend our product offerings with the goal of capturing a greater portion of our advertising customers’ marketing spend and reaching new customers.”
Reed added that the company will continue to invest in new initiatives, hoping to grow its digital business in 2013.
GateHouse is the parent company of the Messenger Post newspapers. The company publishes 78 daily publications across 21 states.
Its stock (OTB: GHSE) was trading midday at a nickel a share, down from Thursday’s close of 6 cents.
(c) 2013 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or email email@example.com.