Ad growth drives Gannett's profits up 10 percent

By The Associated Press

Gannett , the nation's largest newspaper publisher, reported a 10 percent increase in first-quarter profits April 12 thanks to advertising revenue growth, newspaper acquisitions and stronger results in its British properties. 

Gannett, which publishes 101 daily newspapers in the United States including USA Today, earned $274.4 million, or $1 per share, in the three months ending March 28. The results were in line with the estimates of analysts polled by Thomson First Call. In Pennsylvania, Gannett owns the Public Opinion in Chambersburg.

In the period a year ago, the company earned $249.8 million, or 93 cents per share. 

Revenues in the latest quarter rose 11 percent to $1.73 billion from $1.55 billion. 

The company's newspaper division reported a 12 percent increase in revenues to $1.56 billion. The results include the acquisitions of SMG Publishing, the Texas-New Mexico Newspapers Partnership, Clipper Magazine Inc. and NurseWeek. 

Douglas McCorkindale, Gannett's chairman and CEO, said in a statement that the stronger newspaper results were driven by advertising growth and acquisitions, tempered by higher costs for newsprint and benefits. 

McCorkindale also said the company's Newsquest properties in Britain "added significantly'' to the results, because of an improved advertising climate as well as a favorable exchange rate. 

The company's television division, which includes 22 TV stations, reported a 7 percent increase in revenues to $169.5 million, in part because of stronger demand for political advertising. 

Paid ad pages at USA Today increased to 1,099 from 1,096 in the period a year ago, while advertising revenues increased 10 percent.