Gannett net profit down 23 percent on ad slide

Apr 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: Visa, MasterCard moving into mobile pay in Africa

add to favorites email to friend print save as pdf

Related Stories

Better ad climate gives Gannett a boost

Apr 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

Jul 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

Feb 03, 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

Jul 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

Jul 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

Visa, MasterCard moving into mobile pay in Africa

15 hours ago

Americans may just be getting used to mobile pay, but consumers in many African countries have been paying with their phones for years. Now payment processors Visa and MasterCard want to get a slice of that market, and are ...

Wireless show highlights: Eyes on Apple, Blackberry

16 hours ago

As a major wireless show continues this week in Barcelona, Spain, Apple is highlighting the capabilities of its iPhone cameras with a gallery of photos taken by its users around the world.

Venture capitalist testifies in Silicon Valley sex-bias suit

23 hours ago

A prominent Silicon Valley venture capitalist who helped direct early investments in Google and Amazon said Tuesday during testimony in a high-profile sex discrimination lawsuit that his firm is not run by men and has many ...

User comments : 0

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.