By: (AP) Gannett Co., the nation's largest newspaper publisher, reported a 10% increase in first-quarter profits Monday thanks to advertising revenue growth, newspaper acquisitions and stronger results in its U.K. properties.
Gannett, which publishes 101 daily newspapers in the United States including USA Today, earned $274.4 million, or $1.00 per share, in the three months ending March 28, in line with the estimates of analysts polled by Thomson First Call.
In the same period a year ago, the McLean, Va.-based company earned $249.8 million, or 93 cents per share.
Revenues rose 11% to $1.73 billion from $1.55 billion.
The company's newspaper division reported a 12% increase in revenues to $1.56 billion. The results include the acquisitions of SMG Publishing, the Texas-New Mexico Newspapers Partnership, Clipper Magazine Inc. and NurseWeek.
Douglas McCorkindale, Gannett's chairman and CEO, said in a statement that the stronger newspaper results were driven by ad growth and acquisitions, tempered by higher costs for newsprint and benefits.
McCorkindale also said the company's Newsquest properties in the United Kingdom "added significantly" to the results, due to an improved advertising climate as well as a favorable exchange rate.
The company's television division, which includes 22 TV stations, reported a 7% increase in revenues to $169.5 million, due in part to stronger demand for political advertising.
Paid ad pages at USA Today increased to 1,099 from 1,096 in the same period a year ago, while advertising revenues increased 10%.
The company's shares were off 33 cents at $90.09 in early trading on the New York Stock Exchange.
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