Posts Tagged ‘Media Jobs Daily’

McClatchy lost $2M in first quarter

Wednesday, April 27th, 2011

McClatchy Newspapers lost $1.96 million in the first quarter of the year on an 11 percent drop in advertising revenue, though indicators elsewhere are that the economy is getting better.

Media Jobs Daily reminds us that the publisher lost $2 million in the first quarter of 2010, too. And, as Rachel Kaufman writes: “Doesn’t look good.”

As the company’s slump deepens, the Associated Press says part of the problem is that seven of McClatchy’s newspapers are in California and Florida, two of the regions where the downturn in housing prices has been sharp. And, of course, the advertising shift from print to the Internet also continues to hurt.

The 1Q report actually shows that McClatchy’s digital ad revenues grew by  2.2 percent compared to the first of 2010, and were 20.1 percent of  the quarter’s total advertising revenues, up from 17.5 percent in the first three months of 2010.

Overall revenues for the quarter were $303.7 million, down 9.5 percent from 1Q 2010. Advertising revenues were $225.1 million, and circulation revenues were $66.2 million, falling 5 percent.

“The slowing in advertising revenue that we previously reported for January continued through the first quarter,” CEO Gary Pruitt explained. “National advertising continued to be one of the largest areas of decline, falling by 29.3 percent in the first quarter of 2011 compared to 2010. In addition, the shifting of the Easter holiday to a later date in April 2011 compared to 2010 had a negative impact on retail advertising in March. As a result, advertising in March was down 12.7 percent, pulling down the overall ad revenues in the quarter to an 11 percent decline.”

Here’s a good idea from Pruitt, who took home $3.71 million last year, including a $1.85 million bonus: “In response to this year’s weak start in advertising, we have increased our ad sales efforts companywide … .”

On the other hand, he also says much of the lost revenue is not coming back. “I would say that we need to recognize that a big piece of that [a structural shift to digital marketing] is structural and permanent, and therefore we need to make sure that our expense structure is reflecting that and is permanently reduced as well.”

McClatchy eliminated nearly 540 full-time jobs in the first quarter of 2011, a nearly 9 percent reduction from the same time last year, the Associated Press said. The company has also consolidated computer systems and printing among newspapers and hired contractors in place of staff.

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.

Christian Science Monitor growing, earning online

Wednesday, April 7th, 2010

The Christian Science Monitor, which stopped publishing a daily print edition in March 2009 and is mostly a Web-only operation, has seen a 60 percent increase in traffic but has earned about half of the projected ad revenue, says Media Jobs Daily quoting Media Matters.

The CSM actually maintains a weekly print edition, which has seen 79 percent circulation growth since its launch, Media Jobs Daily says.

Meanwhile, the company projected $870,000 in online ad revenue in its first year, but only brought in $490,000.

“The paper also extended a buyout offer to its 85 editorial employees, and four accepted,” says the blog, which focuses on media industry employment, recruitment and career development.

“But … there’s still 81 newsmen and women working at this paper, which is a heck of a lot more than the number of people at any other online-only outfit we can think of.”