Gannett TV Revenue Down 6.1%

The dependency of TV stations on political often reeks havoc with the balance sheet as witnessed within this report below. Good solid local-direct revenue raises good long-term cash and helps offset politically oriented dollar losses. While political is good to have...it's mostly at firehouse rates which begin at the floor. Loading up on good local-direct monthly revenues raises the rate bar so while political campaigns get the lowest unit rate which, when factoring in long-term direct contract rates, political pricing is more in the station's best inventory management and cash flow interests. Philip Jay LeNoble, Ph.D.

While Gannett TV revenue is down, factoring out the lower political revenue, that changes to a 4.7% gain, driven by improving auto advertising. Retrans revenue was up 26.7% and online grew 27.5%.

the following is provided by TVNewsCheck Staff

TVNewsCheck, October 17, 2011 9:12 AM EDT

Gannett Co. today reported third quarter 2011 financial results that included television revenues of $168.8 million, $10.8 million lower compared to $179.6 million last year, despite a net decrease of $18.4 million in political spending.

Total adjusted television revenues, defined to exclude the incremental impact of the cyclical ad demand related to political spending, were 4.7% higher. The increase was due, in part, to strengthening demand for auto advertising in September, Gannett said.

Retransmission revenues increased 26.7% in the quarter and totaled $20 million.

Online revenues at its television stations were up 27.5%.

The company said that based on current trends and comparing against the substantial level of political advertising which totaled $52.4 million in last year's fourth quarter, it expects the percentage decline in total television revenues for the fourth quarter of 2011 to be in the low teens compared to the fourth quarter of 2010. Excluding the incremental impact of political spending, total television revenues are expected to increase in the very high single digits in the fourth quarter this year compared to the fourth quarter last year.