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.
Forget the spin that Gannett posted a profit this quarter, focus on the revenue numbers. The revenue coming in is getting smaller and smaller. Which means Gannett will have to lay off more employees to report a profit next quarter.