Gannett Reports Smaller Fourth Quarter Profit

By Rachel Kaufman Comment

Gannett Co, the largest U.S. newspaper publisher, reported fourth quarter results Monday that delivered on Wall Street’s expectations but still showed a marked decline in advertising revenues.

The company’s total revenues for the quarter were $1.39 billion, down from $1.46 billion the year before, while net income was $116.9 million, down 32 percent from $174 million the year prior. Also, the company spent $40 million after tax on severance and other “workforce restructuring” initiatives, one reason why the company’s profits fell so dramatically.

Ad revenues at the company’s newspapers fell an average of 7 percent, while revenues at Gannett’s TV stations fell 13 percent, mostly due to a lack of political advertising.

Digital revenues, though, rose 9 percent, mostly due to growth at CareerBuilder. Digital now makes up 21 percent of Gannett’s revenues.