Gannett reports jump in income as digital revenue grows 85% following acquisition of Cars.com, CareerBuilder
Publishing, soon to be separated, sees revenue fall 8.8 percent, with ad revenue down over 11 percent in the quarter
The publisher of USA Today, Gannett, today reported strong earnings and revenue growth. Revenue grew 4.9 percent year-over-year, due in large part to the 85 percent growth in digital caused mostly by the acquisition of Cars.com and CareerBuilder from Gannett’s publishing partners in the properties.
Broadcast also saw gains, with revenues totaling $396.8 million compared to $382.3 million, up 3.8 percent “despite challenging year-over-year comparisons, given $51 million in Olympic and political advertising that contributed to Broadcasting Segment revenues in the first quarter of 2014,” the company said.
Publishing, which will be spun off into a new company, did not fair as well. Revenue fell 8.8 percent to $768.2 million. The declines were due to the closing USA Weekend and other changes which led to the loss of $37 million associated with the products.
“We’re off to a great start in 2015 with strong first quarter results and each of our businesses successfully executing on their strategic plans as we approach our separation into two publicly traded companies mid-year,” said Gracia Martore, president and chief executive officer at Gannett.