The Telegraph reported yesterday that Gannett, publisher of USA Today has been enthused by the iPad’s impact on their business, despite having to initiate cost-cutting measures in other aspects of their business. Their free iPad App, available worldwide, has been downloaded more than 1.4 million times since launching April last year.

Gannett, like many other Newspaper organizations had to cut 130 jobs in August at USA Today and lost 6% advertising revenue worth $722m in the last quarter. Yet Gannett’s chief operating officer, Gracia Martore said that “The iPad has been a real positive for USA Today, we expect this will translate into much more significant improvement.”

At this stage USA Today remains free and it’s revenue comes from generating ad revenue from within the app. Gannett’s Chief Executive however couldn’t rule out charging users in the future, saying “We’re looking across the board at this.” Gannett and other newspaper publishers will no doubt be watching closely at tomorrow’s announcement of News Corp’s The Daily and this month’s pay-wall that the New York Times is implementing.

[Via The Telegraph]