Gannett 2Q Core TV Ad Revenue Up 1.5%

Gannett Co. today reported second quarter financial results that included Broadcasting Group revenue of $212 million, 3.2% higher than in the same quarter a year ago. The increase, the company said, reflects significant growth in retransmission revenue and an increase in core advertising revenue mitigated, in part, by lower political revenues.

Television revenues were $204.8 million compared to $197.7 million in the second quarter last year, an increase of 3.6%. Retransmission revenues were 62.3% higher while core advertising revenues were up 1.5%.

Looking forward, Gannett said that “based on current trends and reflecting the significant political and Summer Olympic revenues achieved in the third quarter last year, we expect the percentage decrease in total television revenues for the third quarter of 2013 to be in the mid-teens compared to the third quarter of 2012.

Television revenues in the third quarter of 2012 benefited from approximately $75 million in political advertising and spending related to the Summer Olympics. Excluding the incremental impact of political and Olympic spending, total television revenues in the third quarter this year compared to the third quarter last year are expected to be up in the mid-teens.

Gracia Martore, president-chief executive officer, said: “We are very pleased to report solid revenue growth in our broadcasting and digital segments as well as our fourth consecutive quarter of year-over-year circulation revenue growth overall in our publishing segment. Earnings per share were higher in the quarter as our strategic initiatives, particularly our content subscription model and digital offerings, continued to gain momentum and positively impact our results.”

Martore added: “Our long-term strategic plan — with a focus on both investment and execution — continues to position us for success well into the future. Gannett’s pending acquisition of Belo, and finding new ways to get content and offerings to the right user at the right time, are steps in our long-term strategy.”

Read the company’s report here.