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Gannett posts 5% drop in 2Q profits, flat revenue

By THOMAS ADAMS - 7/22/2013 4:42:45 PM

Gannett Co. Inc. on Monday reported a 5.2 percent decline in profits for the second quarter.

The parent of the Democrat & Chronicle and USA Today newspapers reported net income of $113.6 million, or 48 cents per diluted share, compared with $119.9 million, or 51 cents a share, in the second quarter of 2012.

Excluding special items, net income for the most recent quarter totaled $126.7 million, or 50 cents per diluted share. That compares to $135.6 million, or 51 cents a share, a year ago.

Analysts polled by Thomson Reuters had expected earnings per share of 58 cents on revenue of $1.33 billion. These estimates typically do not include special items.

Revenue for the second quarter was flat at $1.3 billion.
 
Gannett plans to acquire Belo Corp. and its television stations for $1.5 billion, or $13.75 a share, and assume $715 million in existing debt to bring the enterprise value to $2.2 million. The deal is expected to close by the end of the year.

“Our long-term strategic plan—with a focus on both investment and execution—continues to position us for success well into the future,” President and CEO Gracia Martore said in a statement.

Gannett’s shares midday (NYSE: GCI) dropped more than 2 percent from Friday’s close to $25.73.

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