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 late-morning trading.
-- 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”
“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 Purchase”
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 Compulsory Furloughs”
Gannett is imposing another one-week furlough in the upcoming quarter.
March 20, 2009: “Gannett Chief Takes a Pay Cut”
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.
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