Gannett, the largest newspaper publisher in the US, has announced a 6.7% increase in second quarter earnings, boosted by stronger advertising at its UK operations.
The company, which has a portfolio of 100 daily newspapers in the US, including
USA Today, reported that profits grew to $324.3 million from $303.9 million in Q2 2002. Similarly, revenue rose 5.7% to $1.71 billion from $1.61 billion a year earlier.
Gannett said that it had defied the slowdown caused by the war in Iraq and the weak economy. An encouraging performance from Newsquest, the number two regional publisher in the UK, helped advertising revenue rise by 6.6% in the second quarter.
Advertising revenues at USA Today were relatively flat compared to last year while volumes fell by 1%. However, there was a 0.7% increase in television revenues.
There is growing evidence that US publishers are emerging from the worst of the recession with further growth expected in 2004. Both Dow Jones and the New York Times Company have reported gains in the second quarter (see US Newspaper Publishers See Some Ad Gains).
