Gannett Broadcast Revenue Down 14%

Company predicts a positive number for Q1

By Michael Malone -- Broadcasting & Cable, 2/1/2010 9:59:12 AM

Gannett reported fourth quarter broadcasting revenue of $183.2 million in the fourth quarter of last year, a 13.9% decrease from the fourth quarter of 2008. While last year's quarter lacked substantial political advertising, Gannett said "almost three-fold" retransmission revenues and strong growth in its elevator-programming Captivate division helped make up the loss.

Television revenues, which exclude Captivate, were $174.5 million, compared to $205.6 million in the fourth quarter the previous year, reflecting a $47.5 million decrease in political ad demand.

Gannett's publishing division saw operating revenues of $1.1 billion, compared to $1.4 billion in the fourth quarter of 2008.

"As the year progressed, we continuously showed improvements in revenue comparisons and in the permanent restructure of our cost base, culminating in a strong finish to the year," said Gannett Chairman/President/CEO Craig Dubow. "These operating improvements, together with a number of strategic financing actions this year, led to a significant strengthening of our balance sheet."

Total operating revenues for the Virginia-based media giant were $1.5 billion in the quarter, compared to $1.7 billion in the fourth quarter of 2008-a 14.4% decline.

Gannett forecasted television revenues to show an increase in the "very high single digits" for the first quarter of 2010, thanks in large part to the Olympics being on NBC. Gannett owns a large share of NBC affiliates.