The following post is based mostly on an Associated Press story:
Gannett reported a 35.5% rise in third-quarter earnings today, helped by a jump in broadcasting revenue.
A recovering auto industry and political campaigns heading into midterm elections poured money into Gannett's 23 television stations. That, plus an increase in advertising on the company's websites, helped the biggest U.S. newspaper publisher halt declining revenue for the first time since 2006.
Excluding the effect of currency swings, Gannett said overall revenue would have actually grown by close to 1%.
Investors so far don't like what they see: GCI shares recently traded for $12.91, down $1.18, or 8.4%.
Broadcast revenue offset another decline at Gannett's newspapers, which include USA Today and more than 80 other dailies. The continued decline in print advertising revenue — down 5.1% in the quarter — is not a good sign for other publishers. The New York Times Co. and McClatchy Co. report results next week and neither have TV stations to lean on.
But Gannett's net income climbed to $101.4 million, or 42 cents per share, in the three months ended Sept. 26. That's up from $73.8 million, or 31 cents per share, a year earlier.
Excluding items, its earnings totaled 52 cents per share, while analysts expected 50 cents a share, according to a Thomson Reuters survey.
Revenue was flat at $1.31 billion. Analysts expected $1.33 billion.
Friday, October 15, 2010
Urgent: GCI posts 36% jump in third-quarter profit; but Wall Street is disappointed: Shares plunge 8%
7 comments:
Jim says: "Proceed with caution; this is a free-for-all comment zone. I try to correct or clarify incorrect information. But I can't catch everything. Please keep your posts focused on Gannett and media-related subjects. Note that I occasionally review comments in advance, to reject inappropriate ones. And I ignore hostile posters, and recommend you do, too."
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With print continuing to hurt - especially ad revenue at USAT - you can bank on a 1st quarter furlough. Too irrestible not to. They'll decide that sometime in the next few months - when the board of directors also meets to discuss 2010 bonus payouts for Gracia and Craig.
ReplyDeleteBroadcast wont look as good next year with no mid-term election advertising. Lets keep our fingers crossed that the economy will improve. Otherwise, there's more trouble ahead.
GCI will be dumping some papers and ordering furloughs next quarter. Newsprint is dead. If you are in a paper get out now!
ReplyDeleteWhat's all this "constant currency" chatter about? Haven't heard that term before. Seems she's saying that if the dollar hadn't fallen so much, our numbers would be better.
ReplyDeleteWill someone ask about:
* any dividend increase?
* any Q1 2011 Fur-cations?
On the conference call, did Martore just suggest that USCP newspaper profit margins are in high teens to low 20%?! This was in response to a question about Newsquest's profitability.
ReplyDeleteIn response to a question on the conference call, Martore suggests that there won't be any "significant'' severance expenses in the fourth quarter: i.e., any layoffs won't be large.
ReplyDeleteStock down over 10%, yikes!
ReplyDeleteEasy come, easy go.
Daytraders make money.
Investors get slaughtered.
I suspect investors are unhappy at least because:
ReplyDelete1. Revenue came in virtually the same as a year ago, which means profits can only increase by cutting costs. That's not a path for prosperity. And, related:
2. During the conference call, Martore even more than usual danced around the question of prospects for the current, fourth quarter.