With 11 weeks to go in our financial year I am very pleased to tell you we are on track to meet our goal of $40 million in profit. And that means we are also on track to payout an extra week’s salary to our employees as part of the Journal Register Company’s first-ever Profit Sharing Plan. If the Company wins, the Employees win. We all win.
The Fourth Quarter is perhaps the most important quarter for newspaper companies and it will take all of us staying focused to make sure we hit our goal. Our collective efforts have driven an enormous amount of positive change in our Company in less than a year. We cannot afford to stop now.
Profits are pretty simple to calculate. Add up the money coming in and subtract the money going out. But while the calculation may be easy it is the end result of an enormous amount of effort by our People.
In just nine months our Company has gone from emerging from bankruptcy and an also-ran in the news business to a much healthier company financially and one that is now recognized as being Digital First and having the courage to experiment and make the changes necessary to become a robust modern media company serving our communities.
In short we now have:
More Digital Revenue
Harnessing The Crowd
From our Ben Franklin Project to our ideaLab to our crowdsourcing Fact Checking Project in Torrington and our Augmented Reality Project at Connecticut Magazine, we are taking the right steps to involve our Audience in what we do – Journalism. From Editor & Publisher to the Columbia Journalism Review to The Guardian in the UK we have caught the attention of our industry.
And the Crowd and our results are getting bigger. I will blog about this in detail in the near future but in nine short months this Company has become a true Digital First company.
Our Digital audience is now larger than our Print audience in total.
The majority of our Digital revenue sold is Digital only as opposed to an industry trend where most Digital advertising sold is bundled with Print. In November alone we will write more than 1,000 Digital ad order insertions. In some cases our Digital revenue gains have replaced print losses and while many in the industry have suffered major losses in key advertising categories like Employment and Auto, at Journal Register Company we are actually up year over year – because of strong Digital sales gains.
Riding The Cloud
Our initiatives to focus all of our efforts on our core competencies of content creation and advertising sales have resulted in less costs.
We are working through the Cloud to outsource any of our non-core competencies such as ad building or printing and distribution. And where that is not possible we are in-sourcing to our own units through consolidation.
We are becoming as nimble as our new online competitors.
We still have a long way to go. 2010 is only our first year in our journey to make the transformation necessary to ensure we continue the work some of our papers started more than 200 years ago. Finishing this year strong and setting us up for an even stronger 2011 will be key.
Until next time. John.
Chief Executive Officer
Journal Register Company