Gannett 3Q TV Rev Down 16%, Retrans Up

Gannett Co. this morning reported fourth quarter financial results that included broadcasting segment revenue of $228.2 million, down 15.7% from the fourth quarter in 2012. The decline, Gannett said, was driven primarily by the absence of $85.8 million of incremental politically related advertising during the fourth quarter of 2012 partially offset by a substantial increase in retransmission revenue.

Retransmission revenues were $38.9 million in the quarter, an increase of 31.5% from the fourth

quarter in 2012. Television station digital revenues were up 40.3% reflecting growth in digital

marketing services.

Excluding the incremental impact of political spending in the quarter, broadcasting segment revenues would have been 23.4% higher.

Based on current trends and including a full quarter of results for the former Belo stations, total television revenues are projected to increase almost 100% in the first quarter of 2014 compared to the first quarter of 2013. On a pro forma basis, the percentage increase in total television revenues in the first quarter of 2014 is projected to be in the high teens compared to the first quarter of 2013.

Gracia Martore, Gannett president-CEO, said: “Our strong fourth quarter results cap off a highly productive, transformative year for Gannett. From our game-changing acquisition of Belo and the progress of G/O Digital, our digital marketing services business, to the ongoing enhancements we’re making to our All Access Content Subscription Model, we have fundamentally changed the composition of our company and the way in which we interact with consumers and businesses in our communities.

“This enables us to strongly compete across a wide spectrum in today’s digital media landscape. In addition, we are delighted that during the quarter, USA Today regained its position as the number one newspaper in total daily circulation in the nation, reflecting changing media consumption and increased engagement with our digital platforms.”