Updated from 10:16 a.m. EDT
With other newspaper publishers relenting to Wall Street's demands,
will stay the course for now.
On a conference call Wednesday following the publisher's third-quarter earnings report, Gannett CEO Craig Dubow said the company has no intentions of separating its broadcast TV businesses from its newspapers.
Similar measures were
recently adopted at two smaller newspaper chains,
, in response to anxiety on Wall Street about the steepening decline of the newspaper industry. Those moves were greeted by stock rallies, sparking speculation that Gannett and others would follow suit.
Dubow, however, said it's not in the cards. He pointed out that in the case of Belo, which is separating its newspaper business from its TV networks, two-thirds of its portfolio consists of TV properties. For Gannett, the bulk of its assets are newspaper companies.
Also, he noted that E.W. Scripps opted to separate its national media brands from its local properties, which consist of both newspaper and TV businesses. With more than 80 local daily newspapers 20 TV stations in the U.S., Gannett largely resembles the sliver of E.W. Scripps that will remain intact, Dubow said.
"We're staying with
our plan, at least at this particular time," he said.
Gannett, which publishes
in addition to its local properties, reported that its third-quarter earnings fell to $234 million, or $1.01 a share, from $261.4 million, or $1.11 a share, a year earlier. The results for the latest quarter included a one-time restructuring-related charge of $14.5 million.
Analysts had expected earnings of $1 a share for the quarter, based on estimates compiled by Thomson First Call. Analyst estimates typically exclude one-time charges.
Gannett's net operating revenue fell 3.7% to $1.81 billion, meeting Wall Street's expectation.
Dubow said in a press release that the results were "unfavorably impacted by the difficult advertising environment and the relative absence of political advertising."
Gannett's newspaper revenue fell 4.1% to $1.62 billion, with advertising revenue down 5.6% to $1.19 billion. Local ad revenue dropped 3.9%, and classified ad revenue dropped 7.7%.
Gracia Martore, Gannett's chief financial officer, said the declines were largely the result of the downturn in the U.S. housing market, particularly in Florida, California, Nevada and Arizona -- markets where the company has a significant presence. She said the housing slump is a short-term business cycle.
"We can't overstate the impact that real estate is having on these markets," said Martore on the call.
While the housing mess has been a big drag on the newspaper industry, publishers are also contending with sharp declines in advertising revenue as consumers and advertisers increasingly adopt the Internet as an alternative to the printed page.
In addition to the restructuring measures announced recently at Belo and E.W. Scripps, publishers such as
( DJ) and
( TRB) agreed to buyouts amid shareholder discontent.
New York Times
also is under pressure to restructure.
Shares of Gannett recently were up 6 cents, or 0.1%, to $43.56.