Media General posts 4Q profit on cost cuts
Posted by Leah McBride Mensching on January 29, 2010 at 4:20 PM
U.S. newspaper publisher Media General Inc. yesterday announced a profit in the fourth quarter, thanks to cost cutting measures. Shares also rose up to 20 percent, Reuters reported. Net income for the quarter was US$27.4 million, compared to a net loss of $85.5 million the same quarter last year.
These earnings also "suggest that the chill in online ad spending at newspapers is starting to thaw," as the company also posted a 15 percent increase in online ad revenue, paidContent reported.
These earnings also "suggest that the chill in online ad spending at newspapers is starting to thaw," as the company also posted a 15 percent increase in online ad revenue, paidContent reported.
However, profit in the fourth quarter came mostly due to a 22 percent drop in operating costs, mainly a result of furloughs and cost cuts. It also cut 900 employees in 2009, according to Reuters.
In 2010, the company expects results to continue to get better, thanks to its reduced costs and the bettering condition of the economy, said Marshall Morton, president and chief executive of Media General, according to the Winston-Salem Journal.
Media General owns several U.S. papers, including the Journal, the Tampa Tribune and local TV stations.
In 2010, the company expects results to continue to get better, thanks to its reduced costs and the bettering condition of the economy, said Marshall Morton, president and chief executive of Media General, according to the Winston-Salem Journal.
Media General owns several U.S. papers, including the Journal, the Tampa Tribune and local TV stations.
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