Friday, 16 July 2010
Newsquest US parent reports income increase
Gannett, the US parent of UK regional publisher Newsquest, reported today that its publishing segment operating income, excluding special items, for Q2 was up by $31.0 million (20.8%) to $180.3 million, compared to Q2 2009. Publishing segment operating cash flow totaled $214.6 million, up 23.3% from 2009’s second quarter.
Editor & Publisher reports: "The increase reflects the impact of expense cuts in this and previous quarters, lower newsprint costs, and lower revenue declines compared with Q2 2009 -- slightly offset by the absence of furlough savings (where employees take unpaid leave) of about $20 million.
"The company’s net income for Q2, adjusted for special items, was $146.5 million, compared to $107.9 million in the second quarter of 2009 (an increase of 35.7%). Operating cash flow was $327 million, up from $250.9 million in the second quarter of 2009. Ganett's 2010 second-quarter earnings per diluted share were $0.81, including a net gain from discontinued operations of $0.08 per share."
Gannett chairman and ceo Craig A. Dubow said in a statement. “In our Publishing segment, this quarter was the best comparison quarter for advertising revenues since mid-2007.
“We benefited from continuing efficiency efforts company-wide as well as lower newsprint expense. As a result, we generated substantially higher profitability and operating cash flow in all of our business segments.”
Gannett said: "Advertising revenues were 4.6 percent lower in the U.S. and 6.4 percent lower, in pounds, at Newsquest."