Gannett Q2 Profits Down 36%, Shares Tank (GCI)

Thanks to a write-down of nearly $3 billion, we knew Gannett (GCI) was looking at an ugly Q2. And Gannett delivered, announcing 36% earnings drop in preliminary results reported today.

The nation’s largest newspaper company hasn’t finalised the amount of the write-down announced last quarter, but said it would come in between $2.5 and $2.9 billion.

Of greater concern: newspaper ad revenue dropped 13% year-over-year in Q2, including a 17% drop at the company’s flagship paper, USA Today. The company’s local TV stations, which represent 10% of revenue, fared a bit better and dropped a mere 5.9% year-over-year.

Gannett has earned $424.5 million in the first half of 2008, a 26% decrease from the first six months of 2007. The results were in-line with estimates, but shares in the company still fell more than 12% to $15.22 in midday trading, and have lost 68% of their value in the past year.

See Also:
Gannett: Our UK Papers Are Screwed, Too
Gannett Q1: Lousy, In-line
Mogulus Inks Live Video Deal With Gannett

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