10.19.2009 06:05 AM
Gannett 3Q TV Revenues Dip for Lack of Games
McLEAN, VA.: Revenues for Gannett’s 23 TV stations generated
$145.2 million in revenue for the third quarter, down nearly 25 percent from last
year. TV revenues are folded into the broadcast segment, which includes the
Captivate digital signage business. Captivate brought in an additional $6.3
million for a segment total of $151.5 million--down from $197 million last
year, when the Olympics contributed around $50 million.
Gannett reported a threefold increase in retransmission revenues, to $14.3
million, which, along with Captivate, partially offset the absence of the Games
and the continued weakness in the auto category.
Operating expenses for the broadcasting segment totaled $108.4 million, down 4.
percent compared to $113 million a year ago. The decline was attributed to “efforts
to control costs and create efficiencies.” Operating expenses excluding special
items in both quarters were 8.9 percent lower. Operating cash flow was $58.5
million for 3Q09, down nearly 37 percent.
Gannett chief Craig Dubow, who returned to the helm last week after a medical
leave, said improvement was evident in the broadcast division.
“Excluding Olympic and political ad spending, core revenue comparisons were
better in the third quarter than the second quarter,” he said.
Gannett (NYSE: GCI) said that 4Q TV revenues are expected to come in at a
similar year-over-year comparison.
“Based on current trends, we would expect the percentage decline in television
revenues to be in the low 20s for the fourth quarter of 2009 compared to the
fourth quarter of 2008,” the company said in its earnings release. “This is due
primarily to the absence of approximately $58.1 million of political ad revenue
achieved in the fourth quarter of 2008.”
Consolidated revenues for Gannett’s broadcast, online, and print properties totaled
$1.34 billion, down 18 percent from a year ago, but a better than the company’s
forecast of $1.32 billion. Net income was $73.8 million--31 cents a
share--compared to $158.1 million--69 cents a share--for 3Q08. Shares rose
around 8 percent on the results, from around $13.46 to as high as $14 in
-- Deborah D. McAdams
More on Gannett:
October 15, 2009: “Gannett Chief Returns from Medical Leave”
Gannett announced today that its chairman, president and CEO, Craig
Dubow, was back on the job. Dubow took temporary medical leave after having
back surgery June 15.
October 5, 2009: “Gannett Raises $500
Million in Private Placements”
One due in 2014 for $250 million aggregate principal carries an interest
rate of 8.75 percent; another of the same amount is due 2017 and carries an
interest rate of 9.375 percent.
September 29, 2009: “Gannett Anticipates
Profit for 3Q09”
Gannett said today it expects to post net income of between $93 million and
$100 million, sans special charges, for the third quarter ending Sept. 27.
July 15, 2009: “Gannett 2Q TV Revenues
Dip 20 Percent”
Gannett TV revenues fell 20 percent this 2Q compared to last year, with a
similar slide expected for 3Q09.
June 25, 2009: “Bondholders Bet Against
“Gannett as we know it will be lucky to last through June 2011.”
June 19, 2009 “Gannett Shares Inch
Back from CEO Concerns”
Shares of Gannett have slipped 8 percent since the company announced its chief
executive was taking medical leave.
April 16, 2009 “Gannett TV Station
Revenues Drop 16 Percent”
Gannett’s 23 TV stations and its digital signage business revenues totaled
$143.5 million in the quarter compared to $170.2 million in 1Q08.
April 10, 2009: “Gannett Boosted by
Shares of Gannett shot up in today’s trading after one of its institutional
investors bought a bigger chunk of the company
April 7, 2009 “Gannett Offers Higher
Interest in Debt Exchange”
Gannett said it has commenced a private exchange offer for $200 million in
notes due in 2011 and 2012 for new, higher-interest notes due 2015 and 2016.
March 23, 2009 “Gannett Continues
Gannett is imposing another one-week furlough in the upcoming quarter.
March 20, 2009: “Gannett Chief Takes a
Dubow’s pay package was cut by 60 percent last year to $3.1 million, down
from $7.9 million in 2007.
January 30, 2009: “Gannett TV Station
Revenue Holds Steady”
Gannett’s 23 TV stations pulled in $205.6 million during 4Q08... The stations
edged out 4Q07 revenues by nearly 2 percent.
January 15, 2009 “Gannett’s Game Plan”
Gannett said it will send its entire workforce home without pay for one week,
and freeze wages for the year, to avoid cutting jobs.