Gannett Reports Soaring Profit

Gannett Co. said its first-quarter earnings soared as growth in the media company's broadcast and digital businesses offset declines at its publishing division, according to Marketwatch.

In the latest quarter, publishing revenue declined 8.8% to $768.2 million, reflecting softness in print advertising, the sale of Gannett Healthcare Group and the ceasing of publishing of USA Weekend at the end of last year. Advertising revenue fell 11% to $444.4 million, while circulation revenue dropped 3.1% to $273.2 million.

Gannett said it remains on track to spin off the publishing business from its more lucrative broadcasting business in mid-2015.

Gannett greatly expanded its broadcast operations with its $1.5 billion acquisition of broadcaster Belo Corp. in late 2013, and has continued to bulk up its digital properties.

In the latest quarter, Gannett reported that its broadcast revenue increased 3.8% to $396.8 million, mostly driven by 26 growth in retransmission revenue that offset the impacts of year-earlier Olympic and political advertising spending.

Overall, Gannett reported a profit of $112.9 million, or 49 cents a share, up from $59.2 million, or 25 cents a share, a year earlier. Excluding items, year-earlier per-share earnings were 47 cents. Revenue increased 4.9% to $1.47 billion.

Digital-segment revenue, which is reported separately from digital revenue in the publishing division, soared 85% to $332.7 million.

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