Gannett’s Q4 broadcasting revenues down 15.7%


GannettOperating revenues for the company totaled $1.37 billion in the quarter, 6.0% lower than Q4 2012. The decline reflects higher Digital Segment revenues which were more than offset by lower revenues in the Publishing and Broadcast Segments. Broadcasting Segment revenues were impacted by the absence of significant political spending which reached record levels in Q4 2012. Excluding the incremental impact of political advertising, total company revenues would have been relatively unchanged.

Net income was $152.5 million in Q4 while non-GAAP operating income totaled $278.3 million. Operating cash flow in the quarter was $325.7 million.

Total operating revenues for FY 2013 totaled $5.16 billion, a decline of 2.4% compared to 2012. The decline was primarily due to the relative absence of a record $150 million in political advertising and $37 million associated with the Summer Olympic Games in 2012. Total company revenues excluding the incremental impact of political and Olympic advertising were up slightly.

Revenues in the Broadcasting Segment totaled $228.2 million, down 15.7% from Q4 2012. The decline was driven primarily by the absence of $85.8 million of incremental politically related advertising during Q4 2012 partially offset by a substantial increase in retrans. revenue.

However, retransmission revenues were $38.9 million in the quarter, an increase of 31.5% from Q4 2012. Television station digital revenues were up 40.3% reflecting growth in digital marketing services. Excluding the incremental impact of political spending in the quarter, Broadcasting Segment revenues would have been 23.4% higher.

The company closed on its acquisition of Belo on 12/2313. As a result, several operating assumptions for 2014 have been updated to reflect the inclusion of all businesses. Capital expenditures are expected to be $140 million to $150 million. Retrans revenue is expected to be $330 million to $340 million.