Investment income on proceeds from the sale of Lee’s broadcast group and a lower state income tax rate more than offset the effects of a slowing economy.

Revenue for the quarter increased 1.2 percent to $102.2 million. EBITDA decreased 16.1 percent to $23.8 million, and operating income decreased 25.9 percent to $15.6 million.

Excluding the effects of acquisitions and dispositions, advertising revenue decreased 2.3 percent. Retail advertising revenue decreased less than 1 percent as increased sales activity improved performance of local accounts. National advertising revenue, which accounts for less than 5 percent of total advertising revenue, grew 3.5 percent. Classified advertising revenue decreased 5.0 percent, primarily in the employment and automotive categories. Circulation revenue decreased 5.3 percent, due in part to one fewer Sunday in the period compared with a year ago. Online revenue grew 45.3 percent. Total revenue decreased 2.6 percent.

Our second quarter results reflect the slowing of the economy, said Mary Junck, president and chief executive officer. The impact of the advertising downturn, especially classified, has affected our larger markets, such as Madison and Lincoln, to a greater degree than our smaller ones. In all our markets, we’re continuing to concentrate on selling local retail accounts — and, in fact, we’ve added more than 7,000 new accounts across our company since Feb. 1, with a goal of 12,500 by the end of September. The relative strength of our local retail revenue indicates our focus on driving revenue has taken hold.

She added: We are continuing to aggressively reduce costs in all locations through workforce reductions, hiring delays, newsprint conservation, reduced capital spending and expense cuts in every controllable area.

Operating expenses for the quarter, on a same property basis, increased 3.0 percent compared with a year ago, exclusive of depreciation and amortization of intangibles. Compensation was up 3.3 percent, due primarily to increases in benefit costs, additional sales people to drive local ad revenue, and one-time costs related to workforce reductions. Other operating expenses increased 1.3 percent. Newsprint expense rose 6.5 percent as the result of a price increase offset in part by conservation efforts, page width reductions, and lower advertising and circulation volumes.

Investment income from the proceeds of the sale of the broadcast group contributed 11 cents per share to net income.