GCI New Gannett Co Inc

Gannett Co. said its first-quarter earnings fell 5.9% amid continued declines in advertising revenue.

Shares in the company rose 6.7% to $17.48 in recent premarket trading as per-share earnings, excluding certain one-time items, beat expectations.

"The company was successful in accelerating certain printing and distribution improvements into the quarter, generating several million dollars in savings sooner in 2016 than were expected," said Robert J. Dickey, president and chief executive, in prepared remarks.

In the three months ended March 27, Gannett's total operating expenses declined 11%, including a 6.7% decrease in overhead costs.

The latest results come days after Gannett went public with its proposal to acquire Tribune Publishing Co. in a deal valued at about $400 million that would combine ownership of titles including USA Today, the Los Angeles Times and Chicago Tribune.

Gannett owns 107 mostly small- and midmarket U.S. dailies in 34 states, as well as its flagship USA Today. Last summer, Gannett was spun off as a newspaper group from television properties that now comprise Tegna Inc.

Over all for the first quarter, Gannett reported a profit of $31.3 million, or 26 cents a share, down from $33.3 million, or 29 cents a share, a year earlier. Excluding acquisition-related expenses, severance-related charges and other items, adjusted per-share earnings fell to 29 cents from 37 cents.

Revenue decreased 8.1% to $659.4 million.

Analysts polled by Thomson Reuters expected per-share profit of 14 cents and revenue of $672 million.

In the latest quarter, advertising revenue fell 12% to $351.2 million and circulation revenue declined 3.2% to 262.7 million.

Gannett also affirmed its 2016 guidance.

Write to Tess Stynes at tess.stynes@wsj.com

(END) Dow Jones Newswires

April 27, 2016 09:45 ET (13:45 GMT)

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