Gannett Co. Inc., the nation’s largest newspaper publisher, is reporting a third-quarter profit despite a 28 percent drop in revenue from ad sales.
Gannett says it earned $73.8 million, or 31 cents a share, compared with $158 million, or 69 cents a share, in the third quarter of 2008.
Ad revenue fell 28 percent at the company’s newspapers, says MarketWatch, reflecting a 26 percent drop at U.S. papers, and a 29 percent decline, in British pounds, at U.K.-based Newsquest papers. Overall, revenue fell 18 percent to $1.34 billion, with gains coming via cost cutting and a tripling of payments from cable and satellite companies to retransmit the signals of Gannett TV stations.
“Gannett’s profit [which beat projections] reflects painful attempts to slash expenses during the past year, from furloughing and laying off workers to slashing pay,” Reuters says. “Similar moves at other publishers, such as McClatchy Co., which reported results last week, have helped them beat Wall Street’s forecasts.”
Gannett has been slashing its payroll costs aggressively, says the Associated Press’ report. It eliminated 1,400 positions this summer, 3 percent of the work force, less than a year after a 10 percent cut. The company also has frozen wages and imposed unpaid furloughs for most of its U.S. workers.