Gannett net profit down 23 percent on ad slide

April 18, 2011
USA Today newspaper is seen on a stand in Long Beach, California 2009. USA Today publisher Gannett said Monday that net profit fell 23 percent in the first quarter as a double-digit boost in digital revenue failed to make up for a continued print advertising slide.

USA Today publisher Gannett said Monday that net profit fell 23 percent in the first quarter as a double-digit boost in digital revenue failed to make up for a continued print advertising slide.

The McLean, Virginia-based Gannett, the largest US newspaper chain, said revenue fell 3.7 percent to $1.25 billion in the quarter which ended on March 27, while declined 22.8 percent to $90.5 million.

Total publishing revenue fell 6.2 percent to $929.8 million with revenue down 6.9 percent in the United States and 12.4 percent at Newsquest, Gannett's British operation.

Total digital revenue rose 12.4 percent to $251.3 million on higher advertising demand at job search site CareerBuilder. Digital revenue at flagship rose 19.2 percent.

Gannett said digital revenue now accounts for around 20 percent of the company's total operating revenue.

Revenue from Gannett's broadcasting outlets fell $3.6 million to $163.9 million.

"During the quarter, we continued to focus on enhancing content distribution on every platform and sales across platforms," Gannett chairman and chief executive Craig Dubow said in a statement.

"Our publishing segment results for the quarter reflect the current state of the domestic economy with strength in the auto and employment sectors," Dubow said. "However, softness persists in certain sectors, particularly the real estate market here, and more broadly in the UK."

Gannett shares were up 3.18 percent at $15.27 in mid-day trading on Wall Street.

Like other US newspapers, Gannett has been grappling with declining print , falling circulation and the migration of readers to free news online.

Gannett publishes around 80 daily US newspapers and more than 600 magazines and non-dailies. It also has 23 US television stations. Newsquest publishes newspapers, magazines and trade publications in Britain.

Explore further: Better ad climate gives Gannett a boost

Related Stories

Better ad climate gives Gannett a boost

April 16, 2010

An improved advertising climate helped USA Today owner Gannett Co. double its quarterly net profit Friday as credit rating agency Moody's changed its outlook for the newspaper sector to stable from negative.

TV, digital operations give Gannett a boost

July 16, 2010

USA Today owner Gannett said Friday that net profit surged in the second quarter on a strong performance from its television and digital properties and an improved print advertising climate.

New York Times net profit dips 26 percent

February 3, 2011

The New York Times Co. on Thursday reported a 26-percent drop in quarterly net profit as an increase in digital advertising revenue failed to make up for what it lost in print ads and circulation.

Gannett to partner with Yahoo on local advertising

July 16, 2010

(AP) -- Gannett Co., the largest U.S. newspaper publisher, is partnering with Yahoo Inc. to sell local online advertising. It's a deal that could help Gannett boost revenue as its traditional print business declines.

Washington Post stems tide of red ink

July 31, 2009

The Washington Post Co. reversed its slide and posted a quarterly profit on Friday despite a steep decline in advertising revenue at its flagship newspaper.

Recommended for you

Microsoft aims at Apple with high-end PCs, 3D software

October 26, 2016

Microsoft launched a new consumer offensive Wednesday, unveiling a high-end computer that challenges the Apple iMac along with an updated Windows operating system that showcases three-dimensional content and "mixed reality."

Making it easier to collaborate on code

October 26, 2016

Git is an open-source system with a polarizing reputation among programmers. It's a powerful tool to help developers track changes to code, but many view it as prohibitively difficult to use.


Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.