Posted on 07/12/2006 5:55:17 AM PDT by abb
Gannett 2Q Earns Fall 8.3 Percent on Soft British Market, Higher Cost for Newsprint
NEW YORK (AP) -- Gannett Co., the largest newspaper publisher in the country, reported an 8.3 percent decline in second-quarter earnings Wednesday on softness in the British market and higher costs for newsprint and interest payments.
Gannett, which publishes 90 daily newspapers including USA Today, the largest-selling daily, earned $310.5 million in the 13 weeks ending June 25, down from $338.6 million in the comparable period a year ago.
The company earned $1.31 per share, in line with the estimates of analysts polled by Thomson Financial and below the $1.37 reported a year ago.
Revenue climbed 6.1 percent to $2.03 billion from $1.91 billion a year ago, as the company consolidated results from newspaper operations in Detroit. Assuming Gannett owned the same properties in both periods, revenue would have increased 0.5 percent.
Last year the company bought the Detroit Free Press from Knight Ridder Inc. and combined it into a partnership with The Detroit News, which MediaNews Group Inc. bought from Gannett.
At USA Today, advertising revenue rose 0.7 percent in the quarter while paid advertising pages declined 7 percent to 1,107 from 1,191.
Reported newspaper advertising revenue rose 6.4 percent in the quarter, or 0.3 percent had the company owned the same properties in both periods. Same-property advertising revenue in the United States rose 2.2 percent.
Newspaper operating expenses rose 9.8 percent in the quarter on the inclusion of Detroit, or 1.3 percent on a same-property basis. Newsprint expenses, including the addition of Detroit, rose 12.2 percent, reflecting higher newsprint prices and usage. On a same-property basis, newsprint expenses rose 5.2 percent.
In a statement, Gannett CEO Craig Dubow said positive domestic results were "partially offset by continued soft ad demand" in the British market, which is showing signs of stabilizing.
Interest expenses rose to $67.4 million in the quarter from $48.4 million in the same period a year ago as interest rates rose. The company also issued $1.25 billion in debt in the quarter.
Ping
Good riddance to the Four Scourges of the World:
1. Liberal Media
2. Islamofascists
3. Communists
4. Democrats
More...
Gannett profit pinched by newsprint, advertising
By David B. Wilkerson, MarketWatch
Last Update: 8:34 AM ET Jul 12, 2006
CHICAGO (MarketWatch) -- Gannett Co. said Wednesday that its second-quarter profit declined from that of a year ago, hurt by a shaky advertising environment, higher newsprint costs and an unfavorable exchange rate.
McLean, Va.-based Gannett (GCI) said net income fell to $310.5 million, or $1.31 a share, from $338.6 million, or $1.37 a share, in the same quarter last year. On a continuing operations basis, it earned were $1.31 a share compared to $1.34 per share a year earlier. In the most recent second quarter Gannett said it recorded stock compensation expense of 3 cents a share.
Revenue rose to $2.03 billion from $1.91 billion.
Analysts polled by Thomson First Call were expecting a profit of $1.31 a share on revenue of $2.02 billion.
"Our performance in the quarter was in line with expectations and continues to reflect the unevenness of the advertising environment in the various markets we serve," Chairman and Chief Executive Craig Dubow said in a statement.
Domestic community newspapers generated advertising gains during the quarter, particularly in the local and real estate categories, while efforts in digital, and niche publications contributed to growth, Dubow said.
Positive domestic results were partially offset by continued soft advertising demand in its UK operations, but Gannett is seeing "some signs of stabilization in that market."
Broadcasting segment revenue was boosted by political advertisements demand and online revenue growth, but higher newsprint and interest costs, stock compensation expense and an unfavorable exchange rate tempered results.
Newspaper operating revenue rose 6.4% to 1.82 billion. Advertising revenue also rose 6.4%.
USA Today ad revenue inched up 0.7%, as paid ad pages fell to 1,107 from 1,191 a year earlier.
Total newspaper operating expenses rose 9.8%, as newsprint expense rose 5.2% on a proforma basis, Gannett said.
At Gannett's television stations, broadcast revenue rose 3.8% to $205.4 million.
Gannett shares closed at $56.91 on Tuesday. End of Story
David B. Wilkerson is a reporter for MarketWatch in Chicago.
Great news, let's hope for double digits next quarter.
Who will be the first to take my challenge? Imagine: CBS NYTIMES LATIMES TIME MAGAZINE NEWSWEEK Imagine the hours of fun as one by one we watch them slip the surly bonds of earth to roast in hell.
Imagine how poorly USA Today would be doing if there was a fair-and-balanced alternative for business travellers in their hotel each morning. Are you listening Washington Times? How about putting out a National Edition each weekday-- and giving business men and women a choice when we check in at a hotel.
One thing I noticed about the Austin paper lately, their subscription price has gone up as the subscriptions have steadily declined. At least once a week, they throw "sample" papers at homes of non-subscribers. They use a red plastic wrapper, instead of the clear wrapper for regular subscribers.
Didn't you post a rambling oped a couple of months ago by a lying mediot about how great Gannett was?
If they are the greatest, what is happening to the rest?
For a large part of yesterday, the markets were down due to liberal mediots focusing on Alcoa and what a terrible quarter they had. The reality was just the opposite.
It is amazing how many of these same mediots ignore how the dinosaur fishwraps have been doing stock price wise the past two years and blow up stuff like with Alcoa yesterday.
I can't recall Dave, this stuff runs together after a while. There was this one Chicago Trib Dino yesterday going on about "journalism" and how it's the Lord's work... blah, blah, blah.
Check out the thread on network tv news viewership. good info
I wonder if Gannett will report that their profit margin is larger than Exxon's?
Good news indeed, BUT, what would make it even greater would be the BURIAL of the traitorous GRAY LADY!! I HATE THE NYSLIMES!!
More...
Gannett Coy on Possible Acquisitions in Quarterly Conference Call
By Jennifer Saba
Published: July 12, 2006 12:00 PM ET
NEW YORK Gannett is acting coy as to its plans with the one-third stake up for grabs at CareerBuilder. During a quarterly conference call this morning, Gannett CEO Craig Dubow said on the matter: "We will continue our negotiations and that is all we will comment on."
However, Gracia Martore, executive vice president and CFO for the company, said Gannett is carefully weighing its options on where to spend its money including ramping up a stock buyback program -- one analyst pointed out that Gannett's stock is at a nine-year low -- and potential acquisitions including CareerBuilder.
When asked about CareerBuilder's international expansion, Martore said that they are "very focused" to grow its share here in the U.S.
Gannett, Tribune, and Knight Ridder jointly owned the online recruitment site that has flourished over the past several years. According to Classified Intelligence, CareerBuilder's revenue grew 47% to about $157 million in the first quarter compared to the same quarter last year.
Tribune and Gannett have first right of refusal over Knight Ridder's one-third share in CareerBuilder. The two companies are in negotiations with McClatchy, which closed on its acquisition of Knight Ridder at the end of June. Martore said they expect to have a resolution by the end of the quarter.
Meanwhile, Gannett executives forecasted that the newspaper environment will be choppy but that the company will continue to aggressively manage down costs. Executives singled out Sue Clark-Johnson, president of the newspaper division, praising her strong performance on expenses.
Dubow also commented on the recent news that Valassis has agreed to buy Advo -- a sometime and often watched direct mail competitor. "We think the audience has a nice match up," he said. An analyst remarked during the call that one newspaper executive said if Valassis and Advo merged -- a rumor that had been circulating for a few years -- they would pull their business from Valassis.
Gannett indicated that as of now, it has no intentions of dropping Valassis. When asked if Gannett was concerned that Valassis would start pushing distribution through Advo, Martore said, "The audiences we provide to Valassis are uniquely important. We will have discussions and we will see."
Jennifer Saba (jsaba@editorandpublisher.com) is associate editor at E&P.
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