Gannett, the largest US newspaper publisher, on Wednesday reported a 36 per cent drop in second-quarter earnings as its executives predicted gloomy times, including further economic weakness in the US and UK and rising prices for newsprint.

The results pushed Gannett shares down $1.86, or more than 10 per cent, to $15.49, continuing a slide in which the company’s shares have shed more than two-thirds of their value over the past year.