Paywalls Help Boost Gannett's Bottom Line
Gannett Co. today reported strong fourth quarter financial results, including a 29% increase in digital revenue companywide.
Total operating revenue for the company was $1.52 billion during the fourth quarter, 9.4% higher than the same quarter last year.
Revenue for the company’s publishing segment rose 3.7% to $1.04 billion, receiving a boost from the rollout of Gannett’s content subscription model, which helped offset a decline in advertising revenue. The company was also helped by an extra week in the quarter.
Circulation revenue companywide was up 16.8%. Excluding the extra week, circulation revenue rose 9.3%. Local domestic circulation revenue was 23.6% higher. This is the third consecutive quarter of circulation revenue growth, the company said.
Advertising revenue fell 2% to $657.5 million, compared to $670.7 million in the fourth quarter a year ago. Excluding the extra week, advertising revenue was 6.5% lower, the best quarterly comparison in 2012. Ad revenue declined 5.6% in October, 7.4% in November, and 6.7% in December, excluding the extra week.
Digital segment revenue was up due primarily to revenue growth at CareerBuilder. Excluding the extra week in the quarter, total operating revenue was 4.8% higher than the year ago quarter.
"Our strategy is gaining momentum, our investments are bearing fruit and we are achieving the results we expected. We enter 2013 with our businesses performing well and poised for even greater success going forward. We remain confident we are well positioned to achieve our goals and to continue delivering on our promise to return increased value to shareholders,” Gracia Martore, Gannett’s president and CEO, said in a statement.
Read the company’s report here.