Gannett Revenue Climbs but Misses Views
July 27 2016 - 9:40AM
Dow Jones News
Gannett Co. said its second-quarter earnings fell sharply,
undercut by higher expenses, while revenue rose less than Wall
Street was expecting.
Over all, advertising revenue edged down 0.2%--hurt by print
advertising, though Gannett didn't specify by how much, as national
digital advertising revenue rose 22%.
Gannett owns mostly small- and midmarket U.S. dailies in more
than 30 states, as well as its flagship USA Today. Last summer,
Gannett was spun off as a newspaper group from television
properties that now comprise Tegna Inc.
Earlier this year, Gannett went public with its proposal to
acquire Tribune Publishing Co., now rebranded as tronc Inc., in a
deal valued at about $475 million. Tronc publishes titles such as
the Los Angeles Times and Chicago Tribune. In the latest period,
Gannett completed its acquisition of Journal Media Group, Inc.
The company's recent attempts to scoop up other publishing
titles comes amid a flurry of deal making as the struggling
newspaper industry increasingly consolidates.
Gannett said it expects revenue growth between 7% and 9% for the
second half of 2016 and noted that margins would remain under
pressure, particularly in the third quarter, hurt by recent
acquisitions and the company's foreign-currency exposure in the
U.K.
Over all, in the June quarter, Gannett reported a profit of
$12.3 million, or 10 cents a share, down from $53.3 million, or 46
cents a share, a year earlier. Excluding acquisition-related
expenses, severance-related charges and other items, the company
earned 30 cents a share compared to 47 cents a year ago.
Revenue rose 3% to $748.8 million. Analysts polled by Thomson
Reuters expected per-share profit of 31 cents and revenue of $768
million.
In the latest quarter, amid the decline in ad revenue,
circulation revenue rose 8.2%. Total operating expenses rose
6.9%.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
July 27, 2016 10:25 ET (14:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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