Don’t be Fooled by Newspaper Profits, says paidContent
In three of the four, the newspaper publishers’ profitability was based on the aggressive cost-cutting all have taken over the past year (the NYTCo benefited from a favorable tax charge). As Outsell’s Ken Doctor notes, each of the four all sliced expenses between 20 and 29 percent. “The results of the past week primarily shows that expense control has kicked in,” said Alan D. Mutter. “The industry is wondering if newspapers have hit bottom and will stabilize.”
But it’s pretty likely that this “return to profitability” is only temporary, as more drastic changes are sure to come. Even if the economy turns around, think of the past week’s earnings as a small break from the pain the newspaper industry is going through.
So much for that whiff of hope, or is it?