Gannett Co., which owns USA TODAY and more than 100 other local media properties, said Wednesday its first quarter national digital advertising rose 17.5% but net income for the period fell 5.9% as demand for print ad sales remains sluggish.
Net income totaled $31.3 million vs. $33.2 million a year ago. Adjusted earnings per share were 29 cents, beating the estimate of 17 cents from analysts who were polled by S&P Global Market Intelligence.
"We are pleased to report strong first quarter results led by ongoing efforts to improve our cost position," Gannett CEO Robert Dickey said in a statement. "Programs put in place to improve revenue trends are beginning to show positive results."
Shares of Gannett rose 3.8% in morning trading Wednesday to $17.02.
Company-wide revenue fell 8% year-over-year to $659.4 million.
Based in McLean, Va., Gannett publicly revealed Monday its bid to buy Tribune Publishing for about $815 million. The offer was sent in a private letter on April 12 to Justin Dearborn, CEO of Tribune, which owns the Los Angeles Times, Chicago Tribune and nine other dailies.
Earlier this month, Gannett also completed its $280 million acquisition of Journal Media Group (JMG), which owns the 178-year-old Milwaukee Journal Sentinel, The Commercial Appeal of Memphis, 13 other daily newspapers.
"With the completion of the acquisition of JMG, we are beginning to integrate these two great companies, leverage the best of each of our journalistic talents, and look for additional combined cost improvement opportunities," Dickey said.
Advertising sales fell 11.6% to $351.2 million.
Circulation revenue was down 3.2% to $262.7 million. Digital-only subscriptions grew 37%.
