Gannett sees 3Q profit losses
By Leah McBride Mensching, Wednesday 17 October 2007 at 22:36 :: Newspaper Data :: #716 :: rss
Gannett Co. reported Wednesday profits fell 10 percent in the third-quarter, due to a slump in classified advertising sales and television revenue.
Net income dropped $234 million, or $1.01 per share, for the largest newspaper publisher in the United States. The third quarter in 2006 saw net income at $261.4 million, or $1.11 per share. Sales dropped 3.8 percent to $1.81 billion, but earnings per share bested the average of $1 based on the average of 11 analysts' estimates compiled by Bloomberg, the financial news service reported Wednesday.
Ad sales at Gannett's publishing unit dropped 5.6 percent, due to a dramatic downturn in real estate listings in Florida and the western United States, the owner of USA Today reported. However, the drop isn't as drastic as was seen by McClatchy Co.'s, because Gannett focuses more on local markets, which are less subject to Internet competition, Bloomberg reported.
Gannett owns 85 daily U.S. daily newspapers and 23 TV stations. Shares of the company gained $1.18, or 2.7 percent, to $44.68 in New York Stock Exchange composite trading, as of 9:43 a.m., Bloomberg reported. Previously this year, the stock has declined 28 percent before today.
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