Earnings: Journal Communications Revenue Falls; Profit Up

Milwaukee_Journal_Sentinel_logo.gifSecond verse, same as the first: Journal Communications (JRN), publisher of the Milwaukee Journal Sentinel, posted a profit of $3.7 million but a 22.9 percent decrease in revenue to $105.1 million in the third quarter of 2009.

How did the company achieve a modest profit (especially compared to its $4.8 million loss last quarter) amid yet another terrible quarter for advertising? Through layoffs, of course. Expenses at the Journal Sentinel shrank 22 percent thanks to layoffs and a decline in the cost of paper; expenses at the company’s television stations fell 13.2 percent compared to last year, also due to workforce reductions.

Ad revenue across the company’s printed products (classified, national, direct marketing, etc) fell 30 percent compared to last year, and the company expects another poor quarter to wrap up the year “reflecting continued challenges across its businesses.”