Advertisement - Click to support our sponsors.
Gannett’s earnings
Bloomberg News
jump 19%ARLINGTON, Va. -- Gannett Co., the largest U.S. newspaper company, said first-quarter earnings rose 19 percent on higher advertising sales and lower prices for newsprint.
The publisher of USA Today, the Honolulu Advertiser and 72 other daily newspapers said profit from continuing operations rose to $203 million, or 74 cents a share, from $170 million, or 61 cents, a year ago. Revenue increased 15 percent to $1.36 billion, from $1.19 billion. Gannett, which also owns 21 television stations, was forecast to earn 73 cents a share in the first quarter, the average estimate of analysts polled by First Call/Thomson Financial.
A strong economy helped boost Gannett's ad sales, which rose 24 percent at USA Today. Newsprint prices, one of the top costs in publishing newspapers, fell 3 percent. Although newsprint prices remain low, they're rising as paper companies cut capacity. "Favorable newsprint prices are a key driver of earnings," said Deutsche Banc Alex. Brown analyst Peter Appert, who has a "strong buy" rating on Gannett. "My bet is we'll see numbers basically equal to or slightly better than investor expectations from the (newspaper) group over the rest of the quarter."
Bulletin closing archive
