A few more positives
According to Gannett, a sluggish economy is one of the primary reasons dragging down advertising revenue. However, as the company continues to grow its digital reach and improve circulation, advertising revenue should probably improve in the future once the economy picks up.
Also, apart from Gannett’s publishing business, its Broadcasting business has also performed well with revenue increasing around 9% from the year-ago period. Going forward, the company expects the segment to grow in the mid-single digits driven by strength in retransmission revenue.
The bottom line
Gannett’s transition is going on pretty smoothly and the company has duly rewarded shareholders with share price appreciation and a solid dividend. The company has done well to aggressively improve its digital revenue despite being a late starter, as company-wide digital revenue now accounts for 28% of total revenue and jumped 29% from the year-ago period.
Thus, with more improvements expected going forward and the stock trading at pretty cheap levels, it’s not too late to buy some Gannett shares for your portfolio.
The article A Cheap, Dividend Paying Stock That You Shouldn’t Miss originally appeared on Fool.com and is written by Harsh Chauhan.
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