Newspaper publishing giant Gannett today divulged that its third-quarter earnings wilted 11%, though the decline beat analysts' expectations.
Gannett's third-quarter net income registered 10 cents a share lower than a year ago, coming in at $234 million, or $1.01 a share, exceeding analysts' predictions of $1 a share. Revenue also cascaded, falling 3.8% to $1.8 billion, meeting expectations.
The blow came due to a 5.6% decrease in advertising, which has suffered at the hands of recent housing problems. Classified revenue also fell, tumbling 7.7% from a year ago.
Gannett, though, did surprisingly better than other newspapers in the weakening sector. Tribune (TRB) and E.W. Scripps (SSP) are both trading merely cents higher than their 52-week lows, and New York Times today hit a new annual low of $18.28. The future in general doesn't look good for the industry as a whole, considering readers and advertisers have flocked from newspapers to the instant gratification of websites.
Despite scooping other publishers in earnings, shares of GCI bench-marked a new annual low of $43.22 during intraday trading, but have since rallied to $43.82, up 0.3%.