Top business and economy news blog

Gannett ad sales still dropping despite 3Q profit

Profits at Gannett Co. fell 53 percent in the third quarter as the nation's largest newspaper publisher endured another big decline in ad revenue.

Cost cutting helped keep Gannett company profitable, following a pattern it and other newspaper publishers have shown.

Advertising sales in the publishing division of Gannett, which includes USA Today and more than 80 other newspapers, dropped 28 percent from a year ago. That follows a 32 percent decline in the second quarter and a 34 percent decline in the first.

Overall revenue fell 18 percent to $1.34 billion.

Layoffs, other belt-tightening moves and falling newsprint costs helped the company earn $73.8 million, or 31 cents per share. That was down from $158.1 million, or 69 cents per share, a year earlier.

Excluding unusual items, Gannett said it would have earned 44 cents per share. On that basis, analysts expected 41 cents, according to Thomson Reuters. On Sept. 29, Gannett guided analysts to expect 39 cents to 42 cents per share.

Gannett shares rose 33 cents, or 2.5 percent, to $13.33 in premarket trading.