Some papers did well in 2007

Despite all the dismal news in the newspaper industry, here's evidence that some mid-sized papers did very well in 2007: From the Gannett Blog (an independent blog by a former Gannett editor Jim Hopkins, Nov. 28:


"We've always heard that Gannett newspapers racked up double-digit profit margins, even as bad times engulfed the industry. But I've never seen actual numbers until now, because Corporate keeps the performance of individual businesses a well-guarded secret.

"I've recently had an opportunity to review margins for most of GCI's U.S. newspapers as of a year ago (USA Today isn't included).

"The numbers are startling -- especially now, with Gannett poised to lay off perhaps thousands of newspaper workers next week in another bid to boost the company's flagging stock. Every newspaper except Detroit's was profitable a year ago -- although some, just barely so.

"The Green Bay Press-Gazette was the star. It had the single-highest profit margin: 42.5%. In other words, Green Bay kept 43 cents of every dollar it took in. The paper's total ad revenue over the three quarters: $25 million. The report doesn't disclose circulation revenue for any paper. Applied only to ad revenue, then, Green Bay made around $10.6 million in profits during the period. (Will Green Bay lay off workers next week? We'll find out.)"

2008 has been worse than 2007, so the numbers may not look as great at the end of this year. Still, with a 42 percent profit margin, there's a lot of room for some reduction.