• by Erik Sass  @eriksass1, February 1, 2010

Like other big newspaper publishers, Gannett Co. saw its total revenues decline in the fourth quarter of 2009 compared to the same period of 2008 -- but profits increased, due mostly to aggressive cost-cutting measures.

The company also reported that revenue declines in the fourth quarter were smaller than previous quarters, holding out hope that the newspaper business is finally approaching the bottom of a long, precipitous decline.

In the fourth quarter, Gannett Co.'s total revenues fell 14.4% from $1.7 billion in 2008 to $1.5 billion in 2009, while operating expenses dipped 16.2% to $1.2 billion (not counting a $4.5 billion non-cash impairment charge in the fourth quarter of 2008).

Full-year revenues fell 17.1% from $6.8 billion in 2008 to $5.6 billion in 2009. After taxes, net income for the full year was $335 million, compared to a net loss of $6.65 billion in 2008, reflecting the non-cash impairment charge.

The fourth-quarter revenue declines were due mostly to a 17.9% decline in newspaper ad revenues from $963 million to $791 million, which includes USA Today and more than 80 other newspapers. This also reflected a 4% drop in newspaper circulation revenues from $303 million to $290 million, and a 13.9% decline in broadcast ad revenues from $213 million to $183 million.

Digital revenues also slipped 7.2% from $170 million to $158 million.

In percentage terms, these results are an improvement over previous quarters: Gannett's total revenues dropped 18% in the first quarter, 18% in the second quarter, and 19% in the third quarter.