Like some other publishers, Lee saw positive earnings in the third quarter despite the steep revenue decline, thanks mostly to a stringent cost-cutting initiative that reduced expenses about 25% -- and will continue into December with an additional estimated 15% in cuts. The expense reductions helped buoy operating cash flow, up 10.5%.
Still, the overall revenue trend was still pointed firmly downward: classified advertising revenue fell 31.8%, with real estate down 29%, automotive tumbling 31%, and employment plunging an alarming 56%. Retail revenues fell 19.7%. Like other big newspaper publishers, Lee also saw online revenues decrease -- suffering a 24.7% drop, mostly due to the collapse of online classified revenues,
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In addition to the St. Louis Post-Dispatch, Lee owns 48 other daily newspapers and a joint interest in four others, online sites and more than 300 specialty publications in 23 states.
Lee's third-quarter results were typical for the newspaper industry in general.
Gannett's total newspaper revenues sank 23.5% from $1.3 billion to $1 billion; The New York Times Co. saw overall revenues fall 17% from $687 million to $570.6 million; McClatchy's revenues tumbled 23.1% from $452 million to $347.4 million; The Washington Post Co.'s publishing revenues fell 20% from $196.2 million to $156.3 million.
Also, A.H. Belo's revenues sank 17.5% from $153.8 million to $126.9 million, while E.W. Scripps saw newspaper revenues fall 20% from $130 million to $104 million.