Media giant Gannett said it expects to lose up to $70 million this year due to inflation, distribution labor shortages and “price-sensitive consumers.”
Tysons-based Gannett Co. Inc. (NYSE: GCI) updated its full-year guidance Thursday during its second-quarter earnings call, predicting a net loss of between $60 million and $70 million. Three months ago, the company was saying it expected to end the year $50 million to $70 million in the black.
CEO Mike Reed said the company is facing “industrywide headwinds in digital advertising, as well as rising costs.”
“During the quarter, we experienced a rapidly tightening macroeconomic environment caused by rising inflation, coupled with distribution labor shortages and price-sensitive consumers, which has affected our traditional print business,” he said.
Reed said the company has “quickly responded to this rapidly deteriorating economic environment by implementing a significant cost reduction program that we believe will better…
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