On February 1, 2008, Gannett reported that earnings fell 5.2%, from a year ago.The decline in revenue was due in large part to a decrease newspaper advertising revenue.
Q1 2007 earnings revealed that net income at Gannett fell to $210.6 million, or 90 cents a share, from $235.3 million, or 99 cents a share, in the year-ago quarter. Revenue fell to $1.87 billion from $1.88 billion in the quarter a year ago. The company blamed a series of severe winter storms and a softening real estate market for the lower advertising revenue.
Gannett announced both circulation and ad revenue fell in February, and announced expected revenues for Q1 2007 to be lower than the average estimate of research analysts.
Shares of newspaper companies, including Gannett and several competitors, rise as multiple bidders appear for the troubled Tribune Company (TRB), fueling speculation of industry-wide consolidation that could lead to buyers paying above-market prices to purchase newspaper companies.
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