Gannett Broadcast Revenue Down 6% - Broadcasting & Cable

Gannett Broadcast Revenue Down 6%

TV hurt by lack of political, but digital biz continues to grow
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Gannett reported third quarter broadcasting revenue of $174.3 million in the quarter, down from the $185.3 million it reported in the third quarter last year. Subtracting Gannett's Captivate elevator content network, television revenue was $168.8 million, down $10.8 million from the same quarter last year.

Political spending was $18.4 million less in the quarter, meaning total adjusted television revenue, without political figured in, was up 4.7%.

Automotive advertising was up, while retransmission revenues increased 26.7% in the quarter and totaled $20.0 million. Online revenues at Gannett's television stations were up 27.5%.

Gannett expects the percentage decline in total television revenues for the fourth quarter to be in the low-teens compared to the fourth quarter of 2010, due to last year's massive political spending.

Broadcasting segment operating expenses declined 10.9% in the quarter. Gannett's former president/CEO, Craig Dubow, resigned earlier this month due to health issues. Gracia Martore was named his replacement.

"All of our business segments continued to deliver consistent profitability in the third quarter," said Martore. "These results, amid continued market volatility, reflect the strength of Gannett's iconic local and national brands and our relentless commitment to continuously enhancing the news, information and services we offer every day to the communities we serve. Importantly, digital revenues continued to show positive momentum in all of our business segments and were up 10% company-wide compared to last year, reflecting the success we are having in offering content and solutions across all platforms."

Reported operating revenues for the company declined 3.5% to $1.27 billion in the third quarter from $1.31 billion for the same quarter a year ago.

Publishing segment operating revenues were $917.8 million for the quarter compared to $969.4 million in the third quarter of 2010. Digital segment operating revenues totaled $173.9 million in the quarter, an increase of 10.3%. Career Builder was cited as key to digital growth.

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