Gannett Co., Inc. (GCI), the publisher of USA Today, Monday reported a decline in profit for the fourth quarter, hurt mainly by higher restructuring charges. Earnings, excluding special charges, improved from last year, as revenues grew reflecting strong digital publishing and broadcasting revenues.
Both earnings and revenues for the quarter came in ahead Street estimates. Nonetheless, Gannett shares are currently down over five percent on the New York Stock Exchange.
McLean, Virginia-based Gannett reported a fourth-quarter profit that dropped to $103.1 million or $0.44 per share from $116.9 million or $0.49 per share last year.
Results for the fourth quarter included special charges of $114.6 million, compared to $78.4 million last year.
Excluding special items, fourth-quarter earnings improved to $0.89 per share from $0.72 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.88 per share for the quarter. Analysts' estimates typically exclude special items.
Gannett, which publishes 82 daily newspapers, said revenue for the quarter grew 9.4 percent to $1.52 billion from $1.39 billion last year. Analysts estimated revenues of $1.49 billion for the quarter. An extra week in the quarter also helped boost revenues.
Publishing segment revenues grew 3.7 percent to $1.04 billion, reflecting extra week in the quarter and a 16.8 percent increase in circulation revenues. However, advertising revenues dropped 2 percent year-over-year.
Broadcasting unit revenues grew 43.9 percent to $287.5 million from last year, reflecting significant increase in political advertising.
Digital division revenues rose to $187.2 million from $181.5 million last year.
GCI is currently trading at $18.68, down $1.16 or 5.82%.
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