ACQUISITION EXPENSES TEMPER EARNINGS AT GANNETT

By: Staff Reports Ad Revenue Up 9% At USA Today





Gannett Co. Inc., which expanded its newspaper holdings substantially this year, reported earnings per share rose 13% to 79 cents in the third quarter, tempered by acquisition-related expenses. Reported earnings per share met analysts' expectations.



Net income rose 0.4% to $208.2 million as revenue from continuing operations grew 23.6% to $1.59 billion, reflecting the acquisitions of British regional group News Communications and Media PLC, 19 Thomson Newspapers Inc. dailies, and Central Newspapers Inc. On a pro forma basis, revenue from continuing operations would have increased 3%.



Gannett, with 99 U.S. dailies including USA Today, reported that pro forma newspaper ad revenue rose 3% in the quarter on a 2% increase in volume as newspapers benefited from solid national advertising demand, offset by weakness in local. National was up 9%, classified up 2%, and local down 1%.



At USA Today, ad revenue grew 9% in the quarter as paid ad pages grew 4%.



In Gannett's 22-station television group, revenue rose 10% to $183.3 million, reflecting strong political and Olympics advertising demand.







3rd Quarter Earnings Reports:



BROADCAST UNITS DRIVE EARNINGS AT SCRIPPS (10/10/00)







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