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Gannett reports 35% rise in second quarter net profit

Cost-cutting measures and lower newsprint expenses lead to rise in publishing giant's net profit

US newspaper publisher Gannett has reported a 35.7 per cent year-on-year rise in its net profit to $146.5m in the second quarter, the Guardian reports.

The company, whose ad revenue fell by 5.7 per cent y-o-y in the quarter, said that this was the best ad revenue performance at its publishing arm in the last three years. While its classified ad revenue fell by 6.8 percent, its national ad revenue and retail advertising respectively declined by 11 and 4.4 per cent.

Craig Dubow, chief executive of Gannett - which owns the UK's local newspaper Newsquest - said the company's cost cutting plans and lower newsprint expenses lead to the rise in net profit, despite its total revenues falling by 1.6 per cent year-on-year to $1.37bn.

Dubow attributed the rise in profits to strong growth in its digital and broadcasting units, which increased by 8.3 and 20.3 per cent y-o-y respectively.

Gannett owns about 600 magazines, 23 TV stations, and 80 newspapers including USA Today.