New Media Investment Group Inc. reported Thursday a decline in third-quarter net income.
The company posted net income of $2.8 million, or 6 cents a share, for the quarter ended Sept. 25, compared with $6.1 million, or 14 cents a share, a year ago.
Operating income of $10.6 million decreased $4 million from the prior year’s third quarter.
New Media acquired the Rochester Business Journal Inc. last month, in New Media’s fourth quarter.
New Media recorded total revenues of $306.8 million for the quarter, a decrease of 1.7 percent from the prior year. The prior year’s revenues had been boosted by $20.2 million of revenues from the Las Vegas Review Journal, which was sold in December 2015. On a same store basis, total revenues decreased 1.3 percent, the fifth consecutive quarter of improving same store revenue trends, the company said.
The company logged digital revenue of $32 million, an increase of 10.5 percent on a same store basis. New Media reported free cash flow of $26.9 million.
New Media shares (NYSE: NEWM) were trading midday at $15.19, up 7.5 percent from Wednesday’s close.
New Media acquired substantially all of the assets of each of the Missouri-based Tribune Publishing Co., including its flagship daily newspaper, the Columbia Daily Tribune, and the Rochester Business Journal Inc., including the Rochester Business Journal, for a combined purchase price of $8.5 million.
New Media also renamed its B2B publishing division, which includes the Rochester Business Journal, as BridgeTower Media.
BridgeTower Media is the B2B media arm of New Media’s GateHouse Media. The Perinton-based GateHouse Media owns more than 630 community and business publications, including 125 daily newspapers—the Columbus Dispatch, Providence Journal and 2016 Pulitzer Prize-winner Sarasota Herald-Tribune among them—and more than 530 local affiliated websites. In the Rochester area, its properties include the Daily Messenger in Canandaigua, Messenger Post weeklies and Daily Record in Rochester.
“In addition to our acquisition of the daily paper in Columbia, we’re pleased to announce the acquisition of the Rochester Business Journal, which we believe is the perfect addition to our growing BridgeTower business publication platform,” said Michael Reed, New Media president and CEO. “This acquisition marks our third B2B media acquisition in the past nine months, and accelerates our expanding commitment to providing exclusive business information at a local level.”
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