MCLEAN, Va. – Gannett Co. said Tuesday that its fourth-quarter net income dropped 12 per cent, partially a result of the absence of the record-high political advertising that boosted its results a year earlier.
The media company, which publishes USA Today and owns dozens of newspapers and television stations, earned $90.7 million, or 39 cents per share, for the quarter that ended Dec. 29. That was down from $103.1 million, or 44 cents per share, in the same quarter of 2012.
Excluding one-time items, which included restructuring and other costs, the company said it posted adjusted earnings of $152.5 million, or 66 cents per share, for the recent quarter.
The company noted that an extra week in the fourth quarter of 2012 also lifted the company’s results for that period by 3 cents per share.
Revenue fell 10 per cent to $1.37 billion from $1.52 billion, hurt by the steep drop in political advertising. Excluding the effects of political advertising, Gannett said revenue was roughly flat compared with a year earlier.
Despite the drops, earnings were slightly ahead of Wall Street’s predictions, while revenue matched expectations. Analysts polled by FactSet expected earnings of 65 cents per share on $1.37 billion in revenue.
Excluding the effects of the extra week in 2012′s fourth quarter, publishing revenue fell 5 per cent to $944.3 million on lower advertising. Meanwhile, revenue at the company’s broadcast division fell 16 per cent to $228.2 million, largely due to the drop in political advertising.
Excluding political advertising, the company said broadcast revenue from its TV stations jumped 23 per cent, helped by the closing of its $1.5 billion acquisition of Belo Corp. in December. With the deal’s closing, Gannett owns 36 TV stations and provides services for another four.
Digital revenue rose 4 per cent to $195.6 million, helped by revenue growth at its CareerBuilder website.
For the full year of 2013, Gannett earned $388.7 million, or $1.66 per share, down from $424.3 million, or $1.79 per share, in 2012. Revenue fell to $5.16 billion from $5.35 billion.
The McLean, Va.-based company’s stock fell 15 cents to close Tuesday at $26.36.