The largest newspaper publisher in the United States has suffered a 4 per cent drop in its third-quarter earnings.
Gannett Co., which publishes USA Todayand runs 21 television stations, said third-quarter net income dropped to $297 million from $310.2 million a year earlier. Net income per share was $1.22 in the quarter, compared with $1.18 a year ago.
The company earned $1.13 a share from continuing operations on a GAAP basis. A year ago it earned $1.16 a share on that basis, and analysts polled by Reuters Estimates expected the company to earn $1.14 per share for the third quarter this year.
Shares of Gannett have fallen more than many of its rivals, dropping nearly 18 per cent this year, even as the company has aggressively bought back its stock. The Standard & Poor's index of publishing stocks is down roughly 11 per cent.
About 3.6 million shares were repurchased during the quarter by Gannett, part of its stock buyback plan.
The results come as the newspaper industry generally continues to struggle with advertising money moving to the Internet, falling circulation and higher costs for energy and newsprint.
At Gannett, assuming it had owned the same group of properties in both the third quarter of 2005 and 2004, advertising revenues would have risen 1.1 per cent.
A slowing economy in Britain resulted in lower ad demand at the company's UK operation.