Gannett Reports Drop In Profits, Revenues Still Falling

The publisher of USA TODAY and many other newspapers reported income of $111 million for the third quarter of 2011, or about 2 percent less than the third quarter of 2010.

This is thanks in big part to cost-cutting measures at Gannett, which managed to reduce its expenses by about $45 million, even as publishing revenues continued to plummet.

Gannett’s publishing ad revenue fell 8.5 percent to $591 million, circulation fell 1 percent to $262 million, and even its broadcasting arm lost $11 million, or 6 percent, to $174 million.

Digital revenues were up in the double digits (10.3 percent) but that increase wasn’t enough to offset these other losses. Digital now makes up 14 percent of Gannett’s revenues, but it’s not digital newspaper advertising that’s providing the bulk of that cash.

According to Gannett’s statement, the increase reflects “primarily continuing strength in CareerBuilder’s revenue.”