Gannett reports higher earnings and revenue as broadcast acquisitions improve P&L
Publishing advertising, though, declined 4.8 percent and circulation revenue fell 1.4 percent
The media company Gannett reported Q1 earnings today and reported a a 27 percent increase in non-GAAP earnings as the company was able to begin incorporating its new broadcast properties into its P&L.
“This was a terrific first quarter for Gannett, in which the fundamental changes we’ve been making to our business meaningfully impacted our top and bottom lines,” Gracia Martore, president and chief executive officer, said. “An outstanding performance by our new broadcast stations fueled double-digit increases in both revenue and profitability in our Broadcast Segment and contributed to total company pro forma revenue growth and a robust level of free cash flow in the first quarter. Our Broadcast group achieved exceptional ratings, particularly throughout the Sochi Winter Games as Gannett stations took the top two spots in prime time and in every Olympic day-part among major market NBC stations.”
Rumors have surrounded the company as many observers expect Gannett to follow the lead of other media companies by divesting or spinning off its publishing business. Recently Gannett acquired the Belo broadcast properties which strengthened Gannett’s broadcast segment.
“With greater scale and new innovative product offerings, we’ve successfully deepened our connections with customers across all platforms and positioned Gannett to grow and thrive in the digital age,” Martore said. “This strategy, combined with our strong and flexible balance sheet, substantial and growing free cash flow and the ongoing, successful integration of Belo make this a promising year ahead for our company.”
Print advertising and circulation revenue declined at Gannett’s publishing properties, while digital revenues increased 7.6 percent.