Gannett's Revenue Slides on Advertising, Circulation Declines

Gannett Co., the owner of USA Today, said its third-quarter revenue slid 8.6% amid declines in advertising and circulation revenues.

Gannett recently spun off into a pure newspaper company, separating its television assets into a new company called Tegna Inc. Gannett Chief Executive Robert Dickey has signaled that the company is looking to snatch up newspapers, particularly in markets that have populations between a million and three million people.

Earlier in October, the company struck a deal to buy Journal Media Group, owner of the Milwaukee Journal Sentinel and other newspapers, for about $280 million. The deal will expand Gannett's network of 92 mostly small- and medium-market daily newspapers in the U.S. to create a portfolio that would reach 106 U.S. markets.

For the period ended Sept. 27, Gannett reported a profit of $39.2 million, or 33 cents a share, down from $50.6 million, or 44 cents a share, a year earlier.

Excluding severance and acquisition items, per-share earnings were 43 cents.

Revenue fell 8.6% to $701.2 million.

Advertising revenue tumbled 13%, while circulation revenue fell 3.4%.

Operating expenses fell 7.4% to $649.1 million, helped by lower input costs, facility consolidation and impairment charges compared with the prior-year. Mr. Dickey, the chief executive, said the company's cost-cutting plans are progressing.

Shares in the company, up 8.6% over the past three months, were inactive premarket.

Write to Lisa Beilfuss at [e-mail] and Chelsey Dulaney at [e-mail]

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October 29, 2015 10:05 ET (14:05 GMT)

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