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Gannett Co. reported an increase in profit in the third quarter, as television advertising and digital revenue offset a continued decline in publishing revenue.
Gannett, owner of more than 80 newspapers, including the Democrat and Chronicle and USA Today, posted a net income of $133.1 million, or 56 cents a share, up from $99.8 million, or 41 cents a share, a year ago. The results were above average analyst projections of 53 cents a share.
The company reported overall revenue for the quarter of $1.31 billion, up 3.4 percent. Analysts expected revenues of $1.29 billion.
Print advertising revenue declined 6.6 percent during the quarter. Overall publishing revenue was down 3 percent. However, the decrease in publishing revenue was offset by a 38 percent increase in television advertising revenue and a 4.7 percent increase in digital sales.
Gracia Martore, president and CEO of Gannett, said sales received a significant boost from increased television ad spending for the London Olympics and the presidential campaign.
The company’s new digital strategy, which includes its digital pay model that is now in more than 70 markets, helped increase circulation revenue by 5.6 percent during the quarter.
“The early success of our new, all access content subscription model resulted in significant growth in companywide circulation revenue, the first increase since early 2007,” said Martore, in a statement. “Our digital strategies are working and companywide digital revenue now represents more than 25 percent of total revenues.”
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