The parent corporation of the Pantagraph newspaper in Bloomington reports a first quarter profit, even though operating revenue continues to fall. Davenport, Iowa-based Lee Enterprises says it had adjusted earnings of $10.5 million, or 20 cents per share for the three months ending December 30th. The company spent nearly three times that reducing its $916 million in debt. Lee CEO Mary Junck says the company continues to build on the company's ability to resume revenue growth by implementing digital pricing structures, new on line advertising partnerships with Google-double-click, and growing mobile advertising by 147%. Revenue for the quarter was down 3.4%, but thanks to cost cutting and the sale of another of its newspapers, Lee's efficiency at translating sales to cash improved. Expenses fell by 4%. Employment dropped more than 8% for the quarter. Compensation was down nearly 5%. Lee is also increasing the estimate of how much it will cut expenses for the year, up to 4.5%. Lee also plans to sell another of its properties in Hawaii in the current quarter. Money will be used to pay down debt.
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