Morningstar Predicts Further Losses at Gannett

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After more layoffs last week and a 52 percent stock decline in the past year, one might think the bad news was over at Gannett, parent company of The Tennessean. But the financial site Morningstar is predicting further bloodshed over the next five years. The company, once regarded for lean operating costs and the highest profit margins in the industry, is not alone in the nasty slump pounding the newspaper business. But its lack of diversification leaves it open to taking a bigger hit, analyst Matthew Coffina asserts. Morningstar is projecting revenue losses of 5 percent annually and operating income declines of 14 percent annually over the next five years. The upside is that the company's web readership is thriving. The downside is that web advertising only brings in a fraction of the revenue that print ads gather.

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