Gannett Co.'s (GCI) profit plunged 53 percent in the third quarter due to an advertising slump. However, thanks to cost cuts, the publisher's results outperformed expectations, Dow Jones reported.

Gannett said in September it expected the third-quarter profit to greatly surpass Wall Street's forecasts, which brought in hopes that the toughest times for publishers and broadcasters may be over.

However, some still concern remains about the company's US$3.5 billion debt and whether it can sustain a rebound through cost cuts. The publisher's third-quarter operating expenses dropped 14 percent through job cuts, salary reductions and other measures, but publishing ad revenue declined 28 percent, according to the article, posted by the Wall Street Journal.

"Even though they were still down substantially, the ad revenue trend is improving, and the third-quarter performance wasn't as bad as I was expecting. It's continually impressive that Gannett is able to keep cutting back its cost base," Barrington Research analyst James Goss, told Dow Jones.

Gannett's shares, up more than five-fold in the past seven months, increased 1.6 percent to $13.21.

He said that one-fourth of Gannett's debt outstanding now will mature in late 2014 or beyond, after the company finishes its financing restructure. The company had its quarterly profit down to $73.8 million, or 31 cents a share, from $158.1 million, or 69 cents a share, year-over-year. Revenue fell 18 percent to $1.34 billion, better than its own forecast for a 19-percent decline. Publishing revenue was down 24 percent, while broadcasting declined 23 percent, Dow Jones reported.