WASHINGTON (dpa-AFX) - Media holding company Gannett Co., Inc. (GCI), the publisher of USA Today, reported Monday that profit for the fourth quarter dropped 33 percent from last year, hurt by restructuring charges and lower publishing and broadcasting revenues. Adjusted earnings per share topped analysts' estimates by four cents, with revenues matching their view. 'In the fourth quarter, we continued to leverage our local media franchises and iconic national brands across multiple platforms, reinventing local journalism for the digital age and providing innovative marketing solutions for our advertisers. Revenue from our digital properties company-wide rose to 21 percent of total revenue in the quarter,' President and CEO Gracia Martore said in a statement. The McLean, Virginia-based publisher of 82 daily newspapers reported net income of $116.94 million or $0.49 per share for the fourth quarter, down from $174.14 million or $0.72 per share in the prior-year quarter. The results include, among others, workforce restructuring and facility consolidation related charges of $0.17 per share, particularly involving properties in the U.S. and the UK. Excluding such items, net income for the quarter declined to $172.41 million or $0.72 per share from $200.50 million or $0.83 per share in the year-ago quarter. On average, eight analysts polled by Thomson Reuters expected earnings of $0.68 per share for the fourth quarter. Analysts' estimates typically exclude special items. Total net operating revenues for the quarter declined 5.1 percent to $1.39 billion from $1.46 billion in the same quarter last year, yet matched seven Wall Street analysts' consensus estimate. The drop in revenues reflected the virtual absence of $52.4 million of political advertising achieved in the fourth quarter of 2010, the company said. Publishing segment revenues for the quarter declined 5.3 percent to $1.01 billion from last year, reflecting softer ad demand amid the challenging economic environment. Revenues from broadcasting were $199.84 million, down 14.2 percent from a year ago. Meanwhile, digital segment revenues grew 9.4 percent to $181.50 million, propelled by strong revenue growth at CareerBuilder. The company-wide digital revenues were nearly 21 percent of total operating revenues. For fiscal 2011, the company reported net income of $458.75 million or $1.89 per share, about 22 percent lower than $588.20 million or $2.43 per share in the prior year. Excluding items, net income for the year declined to $518.19 million or $2.13 per share from $590.52 million or $2.44 per share in the year ago. Analysts expected the company to report earnings of $2.12 per share for fiscal 2011. Total net operating revenues for the full year declined 3.7 percent to $5.24 billion from $5.44 billion in the previous year. Street was looking for full-year 2011 revenues of $5.26 billion. 'We are positioning for growth in print and digital media through new subscription models delivered across platforms, capturing opportunities in adjacent businesses, and continuing to focus on operational efficiencies,' Martore added. GCI closed Friday's regular trading session at $15.22, down $0.04 on a volume of 7.46 million shares, sharply higher than the three-month average volume of 3.99 million shares. In the past 52-week period, the stock has been trading in a range of $8.28 to $18.93.
Copyright RTT News/dpa-AFX
© 2012 AFX News
