Local TV

Gannett TV Revenue Up 46%

Political, retrans pace media giant to "first year-over-year increase in company-wide revenue since 2006" 2/04/2013 10:16:24 AM Eastern

Gannett reported total television revenues of $280.2 million
in the fourth quarter, 45.7% higher than the previous fourth quarter. The
growth was driven by $91.2 million in political advertising during the fourth
quarter of 2012, and $29.6 million in retransmission revenues, the latter
showing double-digit growth.

Gannett's overall broadcast revenues in the quarter, which
include its Captivate elevator programming, were $287.5 million, up 44% from
the same quarter in the previous year. Excluding the extra week in the quarter,
revenues in the broadcasting segment were 39% higher.

Gannett forecasts its total television revenues to be up in
the high-single digits in the first quarter of 2013. Excluding political
variances year-to-year, the percentage increase in total television revenues is
projected to be up in the 10-12% range in the first quarter.

Broadcasting segment operating expenses totaled $129.6
million, an increase of 17.7% compared to the fourth quarter a year ago.

Total operating revenues for the company were $1.52 billion
in the fourth quarter, a 9.4% increase compared to the fourth quarter last
year. "A substantial increase in broadcasting segment revenues, higher publishing
segment revenues as well as the extra week in the quarter drove the
increase," said Gannett in a statement.

"We are proud of our strong operating results this
quarter with growth in revenue and margin expansion driving strong cash
flow," said Gracia Martore, president and CEO. "This caps an
extremely productive year in which we successfully implemented our strategy to
position Gannett for success in the digital era. For the year, we achieved our
first year-over-year increase in company-wide revenue since 2006. During the
fourth quarter and for the full year, our Broadcasting business delivered
record revenue and profitability. Our television stations significantly
increased market share this year reflecting the value of their content and
format in gaining new viewers while retaining their loyal base."

Publishing segment operating revenues in the quarter were
$1.04 billion, 3.7% higher than the previous fourth quarter, reflecting the
extra week and an increase in circulation revenues. The growth was offset, in
part, by lower advertising revenues.

March