Gannett Q3 Profit Falls, Yet Tops Estimates - Quick Facts

(RTTNews) - Media holding company Gannett Co., Inc. (GCI), the publisher of USA Today, reported a 40.1% year-over-year drop in third-quarter GAAP net income attributable to the company to $79.75 million, from $133.08 million, with earnings per share, on a GAAP basis, totaling $0.34, lower than the prior-year figure of $0.56.

Excluding special items, non-GAAP earnings per share totaled $99.8 million, or $0.43 in the recent quarter. On average, 6 analysts polled by Thomson Reuters expected earnings per share of $0.41 for the quarter. Analysts' estimates typically exclude one-time items.

Operating revenues for the company were $1.25 billion, down 4.3% from last year's $1.31 billion reported a year back. Five analysts estimated revenues of $1.27 billion for the quarter. These results reflect an increase in Digital Segment revenues offset by lower revenues in Publishing and Broadcasting. Publishing Segment revenues were impacted by softer advertising demand and circulation revenue comparisons due to the roll out of the All Access Content Subscription Model last year. The fall in Broadcasting unit revenue reflects the cyclical absence of $75 million of Olympic and political advertising which generated incremental revenues in the prior-year period.

The company said its quarterly results were driven by higher revenue in the Digital Segment as well as substantial revenue growth in the Broadcasting Segment, excluding the cyclical impact of Olympic and political advertising.