Gannett beats forecast with Q2 profit; shares jump

NEW YORK -- The company, which publishes USA TODAY and 83 other U.S. daily newspapers, reported net income of $70.5 million, or 30 cents a share, vs. a loss of $2.29 billion, or $10.03 per share, a year ago, when the company took a hefty write-down on its declining market value.

Excluding special items, Gannett posted adjusted earnings of 46 cents a share in the quarter, vs. $1.04 a year ago, exceeding the average analyst forecast of 36 cents per share, according to Thomson Reuters.

Revenue in the quarter fell 17.8% to $1.41 billion from the quarter a year ago.

Ad revenue in Gannett's publishing division, fell 32%. That was slightly better than in the first quarter, when the unit posted a 34% decline.

In addition to its U.S. newspapers, Gannett operates USATODAY.com. and hundreds of newspaper, TV and other websites. It also owns 23 TV stations in 19 markets and Newsquest, the United Kingdom's second largest regional newspaper company.

In its earnings press release, Executive Vice President and Chief Financial Officer Gracia Martore said, "The economic headwinds, which continued to constrain advertising demand, masked several important achievements in the quarter. In our digital segment, pro forma operating profits rose almost 84%. Total digital revenues across all of our segments were over $225 million."