Gannett Co. (NYSE: GCI) is still one of the Warren Buffett media investments,� but that is not helping the reaction from Wall Street to the Main Street newspaper (and media) player.The company reported a drop of about 33% in its fourth quarter profits due to declining ads in the newspapers and due to lower TV ad revenues.� The growth in digital ads can only replace so much. Ad revenues in the newspaper unit were down by 7.1%.
What is interesting is that the results were actually better than expected.� Gannett managed to beat expectations by $0.03 at $0.72 in earnings per share.� Total company revenues fell by about 5% from a year earlier $1.39 billion, mostly in-line with expectations.
Gannett shares are down 7.1% at $14.15 after this morning’s report on earnings and the 52-week range is $8.28 to $18.93. The fear is that the newspaper business is going to be the cigarette business, except even worse, with secular decline on the horizon regardless of the economy.
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