Gannett, which publishes USA Today and 98 other daily newspapers in the United States, said its U.S. advertising revenues were impacted by an overall slowdown in ad spending, especially help-wanted classifieds. It also cited the absence of millennium-related ads and a sharp decline in Internet company advertising.
Gannett's revenues jumped 19% to $1.57 billion from $1.32 billion in the same quarter a year ago as the company absorbed several acquisitions, including Central Newspapers Inc., 19 papers from Thomson Newspapers, and News Communications & Media of Britain. Had the company owned the same papers in both periods, advertising revenues would have declined 3% as advertising volume fell 4%, the company said in a statement.