Gannett Broadcasting Revenue Up 17%

Bellwether group "extremely encouraged" by revenue trends

By Michael Malone -- Broadcasting & Cable, 4/16/2010 9:54:12 AM

Gannett reported broadcasting revenues of $167.5 million in the first quarter, up 16.7% from the same quarter last year. Gannett includes its Captivate elevator network in its broadcasting group. Television revenues, minus Captivate, were $161.3 million-a big gain on the $139.8 million Gannett reported in the first quarter last year.

Gannett owns 23 TV stations, including KUSA Denver.

Broadcasting operating income was $68.5 million, up 55.2% compared to the first quarter last year.

Virginia-based Gannett said all business segments delivered "substantially higher operating income and operating cash flow" in the first quarter. "The momentum we had at the end of last year continued through the first quarter," said Chairman/CEO Craig Dubow. "Revenue trend comparisons improved in the quarter reflecting the positive impact healthier economies in the U.S. and the UK had on advertising demand as well as advertising revenue associated with the Winter Olympic Games.

"We are well positioned for continued growth as the economy improves," continued Dubow, "and we are extremely encouraged by the revenue trends and our ability to create and capture operating leverage."

Total reported operating revenues for Gannett were $1.3 billion in the first quarter, 4.1% lower than the first quarter of 2009. The publishing segment's operating revenues were $1 billion in the first quarter, 7.1% lower than the first quarter of 2009.

Earlier this week, Gannett announced it is one of a dozen broadcast group involved in a mobile television coalition.