Gannett reported broadcasting segment revenues of $398.3 million in the second quarter, almost 88% higher than the second quarter last year, reflecting Gannett’s acquisition of the Belo station group and “substantially higher retransmission revenue and political advertising across all of our stations,” said Gannett. On a pro forma basis, broadcast revenue grew 13%.
Gannett’s total operating revenues totaled $1.46 billion in the second quarter, 12.1% higher compared to the second quarter in 2013. Gannett’s digital revenues were up 4.2% while publishing revenues fell 4.1%. On a pro forma basis, quarterly revenues were up 1.5%.
"Our very strong second quarter results reflect the outstanding progress we've made in our strategic transformation, positioning Gannett to compete effectively in today's multimedia landscape,” said Gracia Martore, president and CEO. “Our expanded broadcast portfolio drove overall company margin expansion during the quarter, as we continue to transform Gannett into a higher margin, higher growth business. In fact, our Broadcasting and Digital Segments generated approximately two-thirds of our Adjusted EBITDA during the quarter. However, the pressure on national advertising across media impacted results for our Publishing and Broadcasting segments in the quarter."
Broadcasting’s core business was up 74% in the quarter, and down 2% on a pro forma basis. Retransmission revenue grew 141%.
On June 19, Gannett and Sander Media LLC announced the completion of the sale of KTVK-KASW Phoenix for $231 million. The total purchase price, including KMOV St. Louis, was approximately $408 million. The company's previously announced acquisition of six of London Broadcasting Company's television stations in Texas for $215 million was completed on July 8.
Publishing segment revenues in the quarter totaled $867.4 million, a 4.1% decline. Advertising revenues were $530.2 million, a 5.7% drop.
Digital operating revenues totaled $194.4 million, a 4.2% increase from the second quarter in 2013. The growth was driven primarily by higher revenues at CareerBuilder.
Gannett forecasts television revenue percentage for the third quarter to be up in the high nineties, compared to the third quarter of 2013. On a pro forma basis, television revenue is expected to be in the high teens.