Gannett revenue dives as digital gains can not make up for decreases in publishing and broadcasting segments
Broadcasting revenue falls 20 percent due to lack political advertising in this cycle
The publisher of USA Today, Gannett, reported Q4 earnings this morning and said that revenue from both publishing and broadcasting fell hard. Publishing reported a 10.3 percent decrease in ad revenue; while broadcasting fell over 20 percent, due mostly to the lack of political advertising in this quarter versus one year ago.
As a result, net income fell 8.5 percent to $105.2 million, and income before taxes fell over 24 percent.
Gracia Martore, president and ceo, though, called the quarter “strong” and emphasized the company’s acquisition of Belo, as well as the media company’s digital marketing services.
“As a result, each of our segments was solidly profitable in the fourth quarter and we continue to generate substantial free cash flow,” Martore said. “We continue to invest wisely and remain relentlessly focused on the execution of our strategic initiatives, raising the bar on operational excellence, and enhancing the strength of our balance sheet, which provides us with the flexibility to continue to invest in our businesses and explore promising new opportunities. These accomplishments – coupled with the increased advertising demand we are anticipating in connection with the Winter Olympics and elections – position us extremely well for a terrific 2014.”