(Adds details about newspaper and broadcast divisions)
April 23 Gannett Co reported a rise in
first-quarter revenue and profit as its acquisition of Belo
Corp's broadcast TV stations buoyed the company's results on
Gannett, the publisher of USA Today, owns broadcast TV
stations and is the largest newspaper chain in the U.S.
The company has made strides over the past 12 months to
beef up its TV division, which is more lucrative than daily
newspapers. Last year it bought Belo for $1.5 billion, nearly
doubling its broadcast TV holdings to more than 40 stations.
Gracia Martore, president and CEO of Gannett, said in a
statement the new broadcast stations contributed to the
Broadcast revenue rose nearly 100 percent to $382.3 million
because of higher advertising sales related to the Winter
Olympics and fees paid by cable operators to carry local TV
Still, newspapers represented about 60 percent of Gannett's
total first-quarter revenue and the challenges plaguing the
industry have not abated.
Advertising revenue for the publishing division fell almost
5 percent to $526.5 million and circulation revenue, considered
a growth area for newspapers, decreased 1.4 percent to $282.1
Gannett blamed the bad winter weather for the declines.
Total revenue rose 13 percent in the first quarter to $1.4
Net income adjusted for a tax benefits and other items
increased 26 percent to $108.4 million or 47 cents per share.
(Reporting by Jennifer Saba in New York; Editing by Franklin
Paul and Meredith Mazzilli)