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Gannett tops Q3 earnings target, shares drop

Rochester Business Journal
October 21, 2013

Shares of Gannett Co. Inc., the owner of the Rochester Democrat and Chronicle, were down nearly 4 percent Monday afternoon after the company reported its third-quarter results.

The company posted net income for the quarter of $79.7 million, or 34 cents a diluted share, compared with $133.1 million, or 56 cents a share, a year ago. Adjusted for special items, earnings per share were 43 cents. Analysts, on average, had expected 41 cents per share.

Net operating revenues fell 4.3 percent to $1.25 billion compared with analysts' expectations of $1.27 billion. The company reported revenue a year ago of $1.31 billion.

The company saw higher revenue in its digital segment as well as its broadcasting segment, up nearly 14 percent excluding the cyclical impact of Olympic and political cycles of advertising, the company said. Including that cyclical advertising, the broadcasting segment revenues fell 14 percent.
 
Digital revenue now makes up approximately 30 percent of the company’s total revenue, Gannett said. Revenue from the digital segment was up 5 percent.

Publishing advertising revenues were down 5.9 percent to $520.2 million in the quarter. Publishing circulation revenue was down less than 1 percent to $275 million.
 
"In the third quarter, we continued to take steps to further expand our digital offerings and execute across all of our media and marketing platforms,” said Gracia Martore, president and CEO, in a statement. “We achieved a 12 percent increase in digital revenue companywide, which underscores our ongoing evolution into a more highly diversified, higher margin multi-media company.

“Total companywide third quarter 2013 revenue was essentially flat, excluding the incremental impact from Olympic and political spending last year."

Gannett stock (NYSE: GCI) was trading at early afternoon Monday at $26.46, down from Friday’s close of $27.49.
 
(c) 2013 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or e-mail service@rbj.net.


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