* Q2 adj EPS 56 cents vs Street view 52 cents

* Revenue down 2.1 pct, in line with analysts' forecasts

* Publishing advertising revenue drops 8 pct

July 16 (Reuters) - Gannett Co, publisher of USA today, reported lower quarterly revenue on Monday as a persistent advertising slump dogs the newspaper industry.

Gannett, the largest newspaper chain in the United States and an industry bellwether, said second-quarter revenue dropped 2.1 percent, in line with analysts' estimates.

Advertising revenue at Gannett's publishing division took a roller coaster ride during the quarter and fell 8 percent. Compared with a year earlier, advertising sales were down 11.6 percent in April, 1.2 percent in May, and 8.8 percent in June.

Gannett publishes 82 newspapers in the United States and also operates broadcast TV stations and the elevator display product Captivate.

The volatility in the advertising market points to uncertain recovery among newspapers. In a matter of five years, the industry lost more than $20 billion in advertising revenue, suggesting retailers and other traditional advertising mainstays are taking their dollars elsewhere.

As a result, newspapers have been turning to subscribers to reap more revenue. Gannett rolled out a digital pay strategy at half of its U.S. publishing properties. The company said digital revenues were up about 33 percent in the quarter.

Broadcasting revenue increased 11.4 percent to $205.4 million.

Second-quarter net income was $119.9 million, or 51 cents per share, compared with $151.5 million, or 62 cents per share, in the same quarter last year.

Excluding special items, Gannett earned 56 cents per share, beating analysts' average forecast of 52 cents.

Overall revenue was $1.31 billion. Analysts on average were expecting $1.32 billion, according to Thomson Reuters I/B/E/S.

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