Archive for October 19th, 2010

McClatchy down as 3Q trends worse

Tuesday, October 19th, 2010

McClatchy’s excuse that things are less bad than they have been looked like it might have run its course in the third quarter, as advertising revenue fell 6.1 percent in July over the same month of last year, followed by a 5.8 percent decline in August and then a 7.3 percent decline in September.

The McClatchy Co. reported an overall drop of 6 percent in third-quarter earnings on Tuesday, according to the Associated Press. Media Jobs Daily said the 6 percent revenue fall represents a 50 percent drop in income, or profit.

“Excluding unusual items, like a tax recalculation that saved the company some money in 2009 and one and a quarter million in restructuring costs in 2010, income was nearly flat at $10.5 million,” Media Jobs Daily said.

Even CEO Gary Pruitt appears shaken, saying that for the fourth quarter “visibility on revenues is limited,” according to the AP.

The publisher reported a 8 percent drop in revenue for the second quarter and and 8.2 percent drop for the first three months of the year.

Online advertising revenue from July-September was up 1.6 percent year-to-year to $47.5 million for the quarter, while print was down by 8 percent, at $201.7 million. Circulation revenue, including subscription fees and newsstand sales, declined 4 percent to $66.4 million, the AP said.

McClatchy stock was down 27 cents on Tuesday at $3.15 a share, a 7.89 percent drop on the day. Its highest price in the last three months was $3.96 on October 13. On April 20, it was $6.95, it’s best price in a  year.

McClatchy has cut more than 4,150 newspaper jobs since June 2008, according to the Sacramento Business Journal.