Gannett Broadcasting Revenue Down 7%
Chairman, President and CEO Craig Dubow Blames Soft Economy
By Michael Malone -- Broadcasting & Cable, 4/21/2008 9:12:00 AM
Gannett reported broadcasting revenues of $170.2 million for the first quarter, a slide of 7% from the same quarter in 2007. First-quarter earnings per diluted share from continuing operations were $0.84, down from $0.88 in the first quarter of 2007.
Total operating revenues were $1.7 billion in the quarter compared with $1.8 billion for the publisher/broadcaster in the first quarter of 2007, an 8.4% decline.
Gannett chairman, president and CEO Craig Dubow blamed a soft economy, with the real estate market in particular pinching classified-ad revenue. Dubow also cited the loss of the Super Bowl to Fox this year as part of the reason for the decrease in broadcasting revenue, as several Gannett-owned CBS affiliates benefited from the game in 2007.
“We faced a very challenging advertising environment as the economy further weakened in the quarter, particularly in the latter half of March,” he said. “We are focused on positioning the company for the future from both a revenue and expense perspective as we navigate the uncertain economic environment.”
Online revenues at Gannett were up 11.2% for the first quarter compared with a year ago. Operating expenses were down 5.5%, operating cash flow was $66.3 million and television-operations revenues were $163.9 million for the quarter.
“Online revenues companywide contributed to results for the quarter,” Dubow said. “Cost-control and efficiency efforts had a positive impact on the quarter, including lower newsprint usage and expense, and we also benefited from lower interest costs.”
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