Gannett Posts Higher Earnings, Boosted By Advertising Demand
Gannett posted higher fourth quarter profit on Friday, boosted by advertising demand at its newspapers and a rise in political ad sales at its TV stations.
The publisher of USA Today said its fourth quarter profit rose to $353.5 million, or $1.51 a share, from $343.3 million, or $1.44 a share in the year earlier period.
Revenue rose 7.5% to $2.2 billion.
Wall Street expected a profit per share of $1.49 and revenue of $2.15 billion, according to Reuters Estimates.
Advertising demand in its newspaper and broadcasting divisions were both higher in the quarter, the company said.
Newspaper group revenue rose 5% to $1.94 billion. Ad sales rose 3.7% to $1.45 billion in the division, lifted by local and national ad sales.
But higher newsprint costs and other expenses pushed quarterly operating profit at the newspaper group down 4.5% to $472.6 million.
Broadcasting division revenue rose 30.3% to $270.6 million, boosted by political ad spending. Gannett said "substantially higher online revenue" also contributed to the growth, but did not break out results.
Broadcasting operating profit rose 35% to $135.2 million in the quarter.