Gannett earnings
jump 18 percent

Strong ad demand helps the
Advertiser's parent
beat forecasts

Bloomberg News

ARLINGTON, Va. -- Gannett Co., the largest U.S. newspaper publisher, said third-quarter profit rose 18 percent as ad demand rose at its papers, particularly at USA Today, the second-biggest newspaper in daily circulation.

Net income rose to $207.5 million, or 74 cents a share, from $176.5 million, or 62 cents, a year ago. Gannett was expected to earn 71 cents, the average forecast of analysts surveyed by First Call Corp.

Revenue rose 11 percent to $1.36 billion from $1.23 billion.

Gannett owns 74 newspapers including the Honolulu Advertiser and has agreed to buyout the owner of the Honolulu Star-Bulletin and close the afternoon paper on Oct. 30.

Gannett benefited from demand for ad space at its 74 newspapers, led by strength in classified and national ads, and a 9 percent decline in newsprint expenses. Ad sales at USA Today rose 21 percent.

The company said earnings also got a lift from its recent $1.68 billion purchase of U.K. newspaper publisher Newsquest Plc.

Shares of Gannett, which also owns 21 television stations, closed up 69 cents to $72.69 on the New York Stock Exchange.

The company's stock has climbed 47.1 percent in the past year.