Gannett ( GCI), publisher of USA Today, reported a drop in third-quarter earnings as the cost of newsprint and a sluggish broadcasting segment hurt results.

Earnings from continuing operations fell to $275 million, or $1.13 a share, from the year-ago $305 million, or $1.16 a share. Revenue rose 4% from a year ago to $1.86 billion. The numbers were in line with Wall Street analysts' estimate.

The results reflected tough comparisons in the broadcasting business, due to the summer Olympics and political ad revenue that benefited the third quarter 2004. The segment was down 19% to $166.4 million.

"In the third quarter of last year, the company benefited from over $50 million of summer Olympics and politically-related advertising. The absence of these events combined with softer ad demand in the auto category unfavorably impacted our broadcasting segment results," said chief executive Craig Dubow.

Dubow added that while domestic papers posted solid gains, higher newsprint costs and interest rates tempered results. He also noted that the fourth quarter would be hit by tough political ad comparisons to 2004 and a soft ad outlook in the U.K.

Early Tuesday, Gannett was up $1.32 to $67.51.