Gannett 4Q TV Revenue Soars 46%

Gannett Co. today reported strong fourth quarter financial results that included total television revenues that were 45.7% higher and totaled $280.2 million compared to $192.4 million in the previous fourth quarter.

The revenue growth was driven by $91.2 million in politically related advertising during the fourth quarter of 2012.

Retransmission revenues were $29.6 million in the quarter compared to $21.4 million in the fourth quarter a year ago, an increase of 38.7%.

Television station digital revenues were 4% higher than the fourth quarter of 2011.

For the full year, broadcasting revenue was up 25.4%.

Based on current trends, the company said the percentage increase in total television revenues is projected to be up in the high-single digits in the first quarter of 2013 as compared to the first quarter of 2012. First quarter 2013 year-over-year comparisons will be unfavorably impacted by the absence of $5.1 million in political revenue and the move of the Super Bowl from NBC to CBS. Excluding political variances year-to-year, the percentage increase in total television revenues is projected to be up in the 10%-12% range in the first quarter.

Broadcasting segment operating expenses totaled $129.6 million, an increase of 17.7% compared to the fourth quarter a year ago. The increase reflects higher sales and marketing costs associated with the substantial increase in revenues and the extra week in the quarter. Broadcasting segment operating expenses excluding special items and the extra week in the quarter were 13.9% higher.

Record operating income totaled $157.9 million and was 76% higher than the fourth quarter last year while operating cash flow was 69.4% higher and totaled $164.8 million. Operating income excluding special items and the extra week was up 69.4% compared to the fourth quarter a year ago. Operating cash flow on the same basis was 64.5% higher.

For the company as a whole, total operating revenues were $1.52 billion in the fourth quarter, a 9.4% increase compared to the fourth quarter a year earlier.

Gracia Martore, Gannett president-CEO, commented: “We are proud of our strong operating results this quarter with growth in revenue and margin expansion driving strong cash flow. This caps an extremely productive year in which we successfully implemented our strategy to position Gannett for success in the digital era. For the year, we achieved our first year-over-year increase in company-wide revenue since 2006. During the fourth quarter and for the full year, our broadcasting business delivered record revenue and profitability. Our television stations significantly increased market share this year reflecting the value of their content and format in gaining new viewers while retaining their loyal base. Not to be outdone, local domestic publishing circulation revenue also increased for the third straight quarter driven by the success of our all access content subscription model. We are meeting or exceeding the revenue and operating profit goals we had for the all access content subscription model. Total digital revenue across Gannett increased 29 percent and represented 25 percent of total revenue.

“Our strategy is gaining momentum, our investments are bearing fruit and we are achieving the results we expected. We enter 2013 with our businesses performing well and poised for even greater success going forward. We remain confident we are well positioned to achieve our goals and to continue delivering on our promise to return increased value to shareholders,” Martore said.

Read the company’s report here.