Media firm Gannett Co. topped expectations for its quarterly profits, with digital business offsetting declines on the newspaper side, Reuters reports.
“Revenue in the digital business, which includes Cars.com and CareerBuilder.com, jumped 85.1 percent to $332.7 million in the first quarter ended March 29, from a year earlier,” the report notes. “Revenue from the publishing business fell 13.9 percent to $50.5 million.”
Gannett is joining a trend among media companies by spinning off print operations to separate publishing from TV and digital, a move the company announced back in August.
“Net income attributable to Gannett rose to $112.9 million, or 49 cents per share, in the first quarter, from $59.2 million, or 25 cents per share, a year earlier,” Reuters reports.
The Wall Street Journal notes that Gannett has expanded its broadcast operations, notably with the $1.5 billion acquisition of Belo Corp. in late 2013, and has also been growing its digital operations.
“In October Gannett completed the acquisition of the 73% interest it didn’t already own in Classified Ventures LLC, which controlled Cars.com,” WSJ reports.
WSJ adds: “In the latest quarter, Gannett reported that its broadcast revenue increased 3.8% to $396.8 million, mostly driven by 26 growth in retransmission revenue that offset the impacts of year-earlier Olympic and political advertising spending.”