McClatchy continues to sink

McClatchy posted 4th quarter earnings with a 43 percent drop in revenue Tuesday and its stock price followed, dropping 12 percent to less than $4.50 a share.

The publisher also “warned that ad spending appears to be falling at an even quicker pace than before,” the Associated Press said. Ad revenue dropped 10 percent in January from the same month a year ago, following a 7 percent decline for the fourth quarter and a 6 percent decline in the third.

“Although McClatchy’s digital ad revenue climbed 5 percent in the fourth quarter, it was not enough to offset a 9 percent decline on the print side,” the AP said.

“Meanwhile, revenue from newsstand sales and subscriptions fell 3 percent. That made for an overall decline of 6 percent to $370 million from $393 million.”

The Tampa Bay Business Journal’s report quotes McClatchy CEO Gary Pruitt as saying, “Overall, we made good progress in 2010. We held costs down and saw advertising revenue trends improve. As a result, we grew operating cash flow. We also strengthened our financial position by refinancing and reducing debt.”

Also on Tuesday, McClatchy’s Fort Worth Star-Telegram announced that it was cutting 22 positions, which matches moves by several of the chain’s papers since the start of the year.

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