New Media Investment Group (formerly GateHouse Media) lets the local news flow freely. The company is a leading community-newspaper publisher, with more than 400 publications. Its portfolio includes roughly 80 daily newspapers, along with many more weeklies and shoppers that reach about 10 million readers. New Media Investment generates revenue primarily through advertising; its papers serve ads from almost 300,000 business advertisers. In conjunction with its print publications, the company operates more than 600 websites. New Media Investment also produces a half-dozen yellow page directories and offers commercial printing services.
The company has three operating segments: advertising, circulations, and commercial printing. Advertising accounted for almost 70% of revenue in fiscal 2012.
New Media Investment operates newspapers and websites in about 20 states.
Sales and Marketing
New Media Investment itself reported total advertising expenses of $3.4 million in fiscal 2012.
The company's revenue decreased 6% and its net loss increased 38% in fiscal 2012 compared with the previous year. The decrease in revenue was attributed to decreases in advertising revenue and circulation revenue partially offset by an increase in commercial printing and other revenue. New Media's net loss increased primarily due to the decrease in total revenue, not because of increased operating expenses.
The downturn in the economy and the decline of the newspaper industry have forced the company to concentrate mostly on cutting costs, streamlining operations, and converting to a more multimedia company. The company has tried to improve the productivity of its labor force. New Media Investment also relies on the loyalty of readers interested in local news, as about 85% of its newspapers have been around for more than 100 years.
New Media Investment was formed in 1997 as Liberty Group Publishing to buy about 160 publications from newspaper giant Hollinger International (later
Sun-Times Media Group
). It went public in 2006, changing its name in the process.