Gannett Co. (GCI) reversed a prior-year loss in the second
quarter caused by $2.8 billion in write-down, but operations
results continue to weaken sharply as publishing advertising
revenue tumbled 32%.
Still, shares were up 17% at $4.10 in premarket trading as
earnings handily topped analysts' expectations and print ads rose
from the first quarter. Through Tuesday, the stock was down 56%
this year.
Gannett has been aggressively cutting costs in the past year or
so. Earlier this month it unveiled plans to cut 1,400 jobs from its
work force of 41,500. The company, which owns more than 80 daily
newspapers, including USA Today, cut about 10% of its work force
last year.
Chief Financial Officer Gracia C. Martore, who is serving as the
company's principal executive while Chairman and Chief Executive
Craig Dubow is on medical leave, said June was the strongest month
so far this year for print ads. At the same time, Gannett's digital
business saw strong revenue gains owing to the consolidation of
this CareerBuilder and ShopLocal units.
The company reported a profit of $70.5 million, or 30 cents a
share, compared with a prior-year loss of $2.29 billion, or $10.03
a share. Excluding items, earnings slumped to 46 cents from $1.04.
Revenue decreased 18% to $1.41 billion.
Analysts polled by Thomson Reuters most recently were looking
for earnings of 36 cents on revenue of $1.46 billion.
Print revenue dropped 26% while broadcasting reported a 21%
decline.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
tess.stynes@dowjones.com
