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Cost-Cutting Boosts Gannett's Profit Picture

Gannett has seen a roughly 20% decrease in revenue in the third quarter, but surprisingly that isn't alarming investors. In preparation of the release of the company's quarterly earnings early Monday, experts are weighing in.

Gannett was able to make more money than analysts expected because it has cut its payroll and other expenses so dramatically during the past couple years. Its 3Q profit is expected to be well above analyst estimates.

A seasonal shift in television advertising accounted for part of the third-quarter revenue erosion. Last year, the presidential election and Summer Olympics fueled an additional $50 million in advertising on Gannett's 23 television stations. Its bigger headache remains its newspapers, where advertising sales plummeted 33% during the first half of the year. However, Gannett has said the drop in its newspaper advertising during the third quarter wasn't as bad as earlier this year.

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