Acquisitions Buoy Gannett Broadcasting Revenue

Gannett Co. says a soft advertising market impacted revenues in its second quarter (Q2), but new station acquisitions limited the downside in its broadcasting segment. 

The company recorded revenues from its broadcasting segment of $204.7 million in Q2 compared to $205.4 million in Q2 2006. Those results include its television stations, online and its Captivate Network, which delivers programming and advertising to office building elevators.

Results reflect added revenue from acquired television stations (WATL-TV Atlanta and KTVD-TV Denver) and revenue growth of 33.5% in online and 12.3% from Captivate, offset by softness in television advertising demand and substantially lower politically related advertising compared to over $9 million in Q2 2006, according to the company.

Gannett said revenues would have been 6.5% lower if the company had owned the same group of stations in both the second quarter of 2007 and 2006. Broadcasting segment expenses increased 4.6% in the quarter. However, on a pro forma basis, broadcasting costs would have been 1.9% lower. In the second quarter operating cash flow was $95.9 million for the broadcasting segment.

 Reported television revenues were $197.5 million in Q2 compared to $199.0 million in Q2 2006.

For the company, total operating revenues from continuing operations were $1.93 billion in Q2 compared to $2.0 billion in the second quarter of 2006 reflecting lower advertising demand at domestic newspapers and the absence of politically related advertising demand.

 Operating cash flow was $555.1 million.

Net income for the second quarter was $289.9 million versus $304.5 million in the same quarter last year 2006.

 The company reported Q2 earnings from operations per diluted share of $1.25 including income from discontinued operations of $0.01 per diluted share. Diluted earnings per share from continuing operations were $1.24 for Q2 compared to $1.28 in Q2 2006.

 Gannett Co. operates 23 television stations in the United States Inc. and publishes 85 daily newspapers in the USA, including USA TODAY, and nearly 1,000 non-daily publications.