Gannett, a media and marketing solutions company, reported declining net income for the first quarter 2011 due to its slumping publishing segment. Improved sales from job board CareerBuilder led to a boost in digital revenue.
Gannett, which owns a majority stake in the job board, said digital sales grew 12 percent during the period, while the publishing segment dipped by $60 million.
Overall, the company reported net income of $90.5 million, or 37 cents a share, compared with $117.2 million, or 49 cents a share, in the same quarter last year.
Revenue fell 4 percent to $1.25 billion from $1.3 billion.
“During the quarter, we continued to focus on enhancing content distribution on every platform and sales across platforms,” Gannett CEO Craig Dubow said in a statement. “However, softness persists in certain sectors, particularly the real estate market here, and more broadly in the U.K.”
Gannett, which publishes more than 80 newspapers, is one of many major newspaper publishes struggling to adapt to the massive advertising shift from print to online venues.
According to the AP, Gannett imposed cost-cutting measures, including drastic furloughs in the first quarter, when most workers at all its U.S. newspapers except USA Today and the Detroit Free Press had to take one week of unpaid leave. The company did not say how many workers took the leave.
These measures have enabled Gannett to remain profitable during tough times.