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Higher ad revenues
boost Gannett’s net 13%

Bloomberg News

ARLINGTON, Va. -- Gannett Co., the largest U.S. newspaper publisher, said second-quarter earnings rose 13 percent on higher advertising revenue at its community papers and flagship USA Today.

Net income rose to $265.8 million, or $1 a share, from profit from operations of $234.8 million, or 84 cents, in the year-earlier quarter. Sales at the Arlington, Va.-based company rose 16 percent, to $1.49 billion from $1.28 billion

Per-share earnings were in line with the average estimate of analysts surveyed by First Call/Thomson Financial. In the year-ago quarter, a gain of $33 million, or 11 cents a share, related to an exchange of TV stations in Texas and California and profit of $9.4 million, or 3 cents, from discontinued cable operations resulted in net income $277 million, or 98 cents.

The company owns more than 70 daily newspapers, including the Honolulu Advertiser, and has been in an expansion phase recently. It also owns television stations in major U.S. markets. Revenue from newspaper advertising rose 21 percent to $956.9 million from $788.3 million. USA Today ad revenue rose 12 percent. Gannett's shares lost $1.87 today to close at $57.06