Gannett Co., Inc. (GCI: Quote) reaffirmed its expectation of 2%-4% annual revenue growth and greater earnings growth by 2015. The company also reconfirmed that it is on a path to return more than $1.3 billion to shareholders by 2015 through its previously announced $0.80 per share dividend and expanded share repurchase commitment of $300 million over the next two years.
U.S. Community Publishing circulation revenue is expected to grow about 25% by the end of 2013 and the new model is expected to contribute about $100 million to operating profit in 2013. Digital Marketing Services is expected to generate revenue of $75 million-$100 million in 2012.
The company's Senior Vice President and Chief Digital Officer David Payne discussed the progress on the work to re-launch the company's digital and mobile properties by the end of 2013. The company said its Atlanta-based Video Production Center is now operational and has already served over two million videos across Gannett.
The company also reaffirmed that initiative investments being made in the first half of 2012 are expected to positively impact results in the second half and provide an even more significant impact in 2013 and beyond.
Despite initiative spending of $30 million and additional pension expense of $4 million in the second quarter, and excluding special items, the company expects total second quarter expenses to be in line with the second quarter of 2011.
Including the impact of those two factors, and based on second quarter trends and expectations, which include Broadcasting segment revenue growth of 10%-11%, Publishing segment revenue declines of 5%-5.5%, and company-wide digital growth of 12%-13%, the company said it is comfortable with the current First Call consensus of second quarter earnings per share.
Analysts polled by Thomson Reuters expect the company to report earnings of $0.53 per share for the second-quarter. Analysts' estimates typically exclude special items.
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by RTT Staff Writer
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