Broadcast revenue growth saves the day at Gannett as newspaper ad revenue falls 8.1% in Q2
The publisher of USA Today today announced its Q2 earnings, recording profits that beat analyst estimates, thanks in large part to strong broadcast revenue.
In the second quarter of the year, Gannett’s broadcast revenue grew 11.4 percent to $205.4 million. This led to the company being able to record 56 cents per share of earnings, beating the forecast of around 52 cents.
Of course, things remain dire at the company’s publishing divisions. Newspaper ad revenue fell another 8.1 percent in Q2 compared to Q2 of 2011. While slightly less than the 8.4 percent decline seen in Q1, the company continues to hemorrhage ad dollars in its newspaper division.
“Broadcasting results were positively impacted by significantly higher core and politically related ad demand and retransmission revenue,” Gracia Martore, president and chief executive officer said in the company’s statement.
“Company-wide digital revenues were up 13 percent reflecting higher demand for digital solutions and the early success of our new subscription model. Publishing revenues reflected uneven advertising demand. We anticipate that Olympic and political spending and increasing revenue from new initiatives will bolster company-wide results in the second half.”