A MASSIVE cost-cutting operation at Mecom, the struggling European publisher, has enabled it to partially offset plummeting revenues.
The company said yesterday that despite advertising sales falling dramatically in recent months, the first quarter of 2013 had seen costs fall by 12 per cent compared with the same period last year.
This caused some relief to investors who were stunned earlier this month when Mecom warned that advertising sales in its key Dutch market would be far worse than expected. The news had sent shares in the company, which owns more than 250 titles and 200 websites in the Netherlands, Denmark and Poland, falling by a third.
The company’s stock rose by five per cent yesterday, although it is still half that of early April.
The company said yesterday that revenues during the period had fallen 12 per cent year-on-year, mainly due to weakness in Dutch advertising sales.
Although it warned that the market will remain tough in the rest of the year, Mecom said it was planning further cost savings.