Gannett earnings jump 37% on broadcast, Internet gains

By Andrew Vanacore, AP Business Writer

NEW YORK — Gannett Co. (GCI) reported a 37% rise in third-quarter earnings Friday, helped by a jump in broadcasting revenue.

A recovering auto industry and political campaigns heading into midterm elections poured money into Gannett's 23 television stations. That, plus an increase in advertising on the company's websites, helped the biggest U.S. newspaper publisher stop a decline in revenue for the first time since 2006.

Broadcast revenue jumped 22% to $185.3 million. And digital revneue, including its media sites and sites such as CareerBuilder and ShopLocal, climbed 10% to $157.7 million.

Excluding the effect of currency swings, Gannett said overall revenue would have grown close to 1%.

Broadcast revenue offset another decline at Gannett's newspapers, which include USA TODAY and more than 80 other dailies. The continued decline in print advertising revenue — down 5.1% in the quarter — is not a good sign for other publishers. The New York Times Co. and McClatchy Co., owner of The Miami Herald and The Sacramento Bee, report results next week and neither have TV stations to lean on.

Gannett's net income climbed to $101.4 million, or 42 cents a share, for the three months ended Sept. 31. That's up from $73.8 million, or 31 cents a share, a year earlier.

Excluding unusual items, earnings totaled 52 cents a share, while analysts expected 50 cents, according to a Thomson Reuters survey.

Revenue missed Wall Street forecasts, staying roughly flat from the same quarter a year ago at $1.31 billion. Analysts expected $1.33 billion.

Overall publishing revenue, including subscription fees and newsstand sales along with advertising, slipped 4.8% to $969.4 million.

http://www.usatoday.com/money/companies ... nett_N.htm