Gannett 1Q profit tumbles as ad declines deepen

NEW YORK - Gannett Co., the largest newspaper publisher in the U.S., reported a 60 percent decline in first-quarter profit Thursday, with advertising revenue in a deepening slump.

Gannett, which publishes USA Today and dozens of other daily newspapers, earned $77 million, or 34 cents per share, in the first three months of the year. In the same quarter in 2008, McLean, Va.-based Gannett earned $192 million, 84 cents per share.

Adjusting for one-time losses and gains, including a settlement related to a union pension plan, a land sale and severance costs, earnings came to 25 cents per share. On that basis, analysts had expected 24 cents, according to Thomson Reuters.

Revenue fell 18 percent to $1.38 billion, just below Wall Street forecasts for $1.44 billion.

Ad sales in the company's publishing unit, which includes newspapers, fell 34 percent to $723 million. It marked the ninth consecutive quarter of ad declines for the unit.

A service of the Associated Press(AP)