Tuesday, 31 January 2012

Gannett’s Earnings Fell 33% in Fourth Quarter

Gannett on Monday reported a 33 percent drop in fourth-quarter net income, saying profits were weighed down by reorganization costs and other charges.

The media company, which publishes USA Today and owns a network of broadcast, digital and other publishing properties, said it earned $116.9 million, or 49 cents a share, in the three months that ended Dec. 25. That was down from earnings of $174.1 million, or 72 cents a share, in the period a year earlier.

Excluding special items like reorganization charges, Gannett earned 72 cents a share in the quarter. Analysts expected earnings of 68 cents a share, according to FactSet.

The company said its results reflected $63.6 million in charges related to work force and facility consolidations at properties in the United States and Britain. The largest was associated with the transfer of production of The Cincinnati Enquirer to a newspaper printer in Columbus, Ohio.

Revenue fell 5 percent, to $1.39 billion from $1.46 billion in the period a year earlier. Analysts were expecting revenue of $1.39 billion.

Revenue at Gannett’s publishing division fell 5 percent, to $1.01 billion, a decline the company attributed to lower advertising amid the economic softness in the United States and Britain.

Broadcasting revenue fell 14 percent, to $199.8 million, mainly because of less political advertising than a year earlier.

Revenue at the company’s digital division, which includes the Web site CareerBuilder, rose 9.4 percent, to $181.5 million.

Companywide digital revenue, which consists of the digital division and revenue generated by newspaper Web sites, rose 6.5 percent, to $290.3 million.

For the full year, Gannett earned $458.7 million, or $1.89 a share, down 22 percent from $588.2 million, or $2.43 a share, in the previous year. Adjusted earnings were $2.13 a share.

Shares of Gannett fell 6.9 percent, or $1.05, to $14.17 on Monday.

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