Newspapers may be making a third less money than a year ago, TV stations may be losing out to multi-channel inventory and everyone may be struggling to convert web readers in to cash - but accounting firm Grant Thornton says everything’s improving…

The value of the firms on its Media Index of 100 market-listed media companies actually rose 33.5 percent during Q3 (July to September).

That’s the index’s biggest jump of the year, suggesting the cost-cutting and right-sizing many firms have undertaken since late last year may have satisfied investors, if not the hundreds of laid-off staff.

Grant Thornton says…

—“The majority (70 percent) of listed media companies were in positive territory in Q3 and media stocks outperformed the FTSE 100, (which saw an 18 percent growth in the period).”

—Though the Media Index dipped 18 percent in Q1 (January to March), it jumped back up by 20 percent in Q2 (April to June).

—That followed annual dives of 58 percent in 2007 and 46 percent in 2008.

Grant Thornton notes Yell, Trinity Mirror (LSE: TNI) and Johnston Press amongst those to have turned around their market valuation, following refinancing and restructuring plans: “may signal a re-bound to a more consistently positive sentiment for the media industry as a whole after over two years out of favour with the market.” (The index excludes FTSE 100 and Micro Cap companies).

We say: Company valuations may have flaoted back above the surface, but that’s only relative to the low water mark of the downturn and pre-downturn, and thanks mainly to those market-pleasing cuts. Companies still need to demonstrate a willingness to respond to the long-term structural change that looms over the industry.