Posts Tagged ‘revenue’

McClatchy set to reward top execs

Monday, February 1st, 2010

Top McClatchy executives could be getting six-figure bonusesfor their efforts towards stabilizing the company’s financial outlook following a period of significant economic turmoil,” according to Editor & Publisher’s review of regulatory filings submitted late Friday.

CEO Gary Pruitt is excluded from eligibility for the $160,000-plus bonuses under the “2010 Senior Executive Retention Bonus Plan.”

Bonuses will be paid to three executives E&P names if the chain’s performance in operating cash flow in 2010 is sufficient to fund a supplemental company contribution to its 401(k) retirement plan, McClatchy said.

Signs point to modest ad growth

Friday, January 29th, 2010

Another media watcher sees signs of economic recovery and reason to adopt a more positive outlook for advertising in 2010.

Barclays Capital said Thursday that ad sales could climb 3.5 percent to $167.6 billion this year, which is better than the group’s previous expectation for a flat year, Bloomberg reports.

“While we expect modest aggregate growth for local media advertising in 2010, we also expect national advertising to outpace the growth of local advertising and take share from local overall,” the report says.

Network TV ads, with help from the Olympics and World Cup, may rise 7.8 percent and online ads could grow by 8.9 percent, the report says. Previous estimates were 4.5 percent and 5.7 percent, respectively. Local broadcast TV advertising could grow by 5 percent (3 percent was projected previously) and radio ads could see a 2.2 percent gain instead of a 4 percent decline.

Newspaper ad spending  should drop 5.8 percent, better than the 10 percent loss expected previously. Magazine ads should be down 3 percent instead of the 10 percent decline expected earlier.

Interpublic Group’s forecasting unit said last week it expected a 1.4 percent rise in ad spending overall with the help of the Olympics and elections.

McClatchy claims profits, hints at more job cuts

Thursday, January 28th, 2010

The McClatchy Company on Wednesday claimed a profit in the final quarter of 2009 partly attributable to an improving advertising climate, but CEO Gary Pruitt indicated that the company would proceed with more layoffs.

“Given that total ad revenues are still negative and secular challenges remain, we will continue to focus on costs,”  Pruitt said in a statement, according to a New York Times report. Over the past couple of years, “costs” has meant personnel and has translated as job cuts at McClatchy newspapers.

McClatchy posted a 16.5 percent drop in revenue from a year earlier to $393.2 million, and said advertising revenue was down 20.5 percent, to $308.7 million. But, Pruitt said, advertising trends — particularly on the Web and including classifieds — were better in October, November and December.

“McClatchy spent 2009 shrinking itself to match dwindling ad revenue in the recession,” The Associated Press said. “It ended the year with about two-thirds of the payroll it had in the middle of 2008.”

The publisher also announced a deal to delay payments on its $1.95 billion of debt by selling bonds and assuming higher interest rates.

Miami paper collecting readers’ donations

Monday, December 21st, 2009

The Miami Herald is deriving revenue by soliciting donations on its Web site, say Executive Editor Anders Gyllenhaal. Credit card forms linked at the bottom of articles on MiamiHerald.com and ElNuevoHerald.com since last week enable donations to the McClatchy Newspapers properties.

“The first few days of this experiment have elicited an encouraging steam of gifts, ranging from $2 to $55,” Gyllenhaal wrote in Sunday’s paper. “They’ve also provoked an array of reactions, here and across the country, since this has drawn attention as the first effort of its kind.”

He does not provide any further information about the amount raised.

“We think of this as a way to try something new at a time when The Herald has dozens of experiments under way,” he said. “We hope it helps us explore how readers view this whole equation. It also responds to the small but steady group of readers who, like the caller the other day, have asked how they can contribute.”

Radio posting ups and downs

Monday, December 21st, 2009

As the nation’s largest radio station owner, Clear Channel Radio, reported a substantial increase in ad sales in December and January on Friday, Citadel Broadcasting Corp., the No. 3 radio group, filed for  bankruptcy protection.

Together with some positive macroeconomic indicators and glimmers of a turnaround in magazine ad sales, the radio rebound holds out hope for a broader media recovery in the New Year,” Media Daily News said Friday in its Clear Channel report.

‘The ongoing weakness in the economy and advertising spending, compounded by rising debt and leverage’ have left Citadel with an ‘unsustainable capital structure,’ Neil Begley, an analyst at Moody’s Investors Service, said December 11 in a report,” according to Bloomberg.

“Sales ‘will continue to decline’ this quarter, Citadel said in a November 6 filing with the U.S. Securities and Exchange Commission,” Bloomberg continues. “The company didn’t expect to meet January financial covenants, leading to a default and possibly forcing a bankruptcy filing, Citadel said at the time.”

At Clear Channel, “national spot ad sales increased 13.2 percent in December compared to last year; January 2010 is on track to deliver a 17.4 percent increase over January 2009’s dismal results.”

According to Bloomberg: “Citadel owns and operates 224 radio stations and produces programming for more than 4,000 affiliates. It is the third-largest U.S. radio company broadcasting from land-based antennas, behind Clear Channel and CBS Corp. Sirius XM Radio Inc., which charges subscribers for programming transmitted by satellites, is the second-largest radio broadcaster by revenue.”

Dignity, shmingnity: Herald puts its hand out

Wednesday, December 16th, 2009

McClatchy Newspapers’ Miami Herald has begun soliciting donations at the end of its online articles.

“Support ongoing news coverage on Miamiherald.com,” says an interactive message at the end of articles at the site. The click-through goes to a page with a credit card form and a message that says in part, “If you value The Miami Herald’s local news reporting and investigations, but prefer the convenience of the Internet, please consider a voluntary payment for the web news that matters to you.”

They’ll take Visa, MasterCard or American Express.

“We’re trying something new, we’re putting it out there to see if it works, to see what the response is,” Elissa Vanaver, Herald vice president/assistant to the publisher, told NBC Miami. She said there are currently no plans to start charging for content.

Though McClatchy CEO Gary Pruitt said just last week that all of the firm’s newspapers are profitable, the Herald announced the elimination of 24 jobs and a cutback in hours at the beginning of December. This followed elimination of more than 370 jobs in 2008, 175 more in March and 16 more in August, according to one count, a pattern followed at each of McClatchy’s 30 daily newspapers.

McClatchy CEO optimistic

Tuesday, December 8th, 2009

Update: Gary Pruitt “said that advertising revenue is ‘finally, finally, improving,’ that all 30 of [McClatchy's] newspapers are profitable and that McClatchy expects to maintain, if not grow, cash flow in 2010,” Editor & Publisher reported after McClatchy’s presentation to the UBS Global Media and Communications Conference Tuesday morning.

***

McClatchy’s Gary Pruitt, a day after reinstituting employee raises (see post below), said Tuesday that the company expects revenue trends to continue to improve going into the first quarter of 2010.

Pruitt’s projection is that fourth quarter revenue wll be less-bad than it has been — “down in the low- to mid-20s percent range compared to down 28.1 percent in the third quarter and 30.2 percent in the second quarter.” Also, because of mass layoffs — “our focus on permanently reducing our costs” –  “we expect operating cash flow in the fourth quarter to grow compared to last year. Similarly, in 2010 we expect to at least maintain if not grow operating cash flow,” Pruitt said in a news release.

McClatchy management was to review the company’s business and strategies in a presentation at the UBS 37th Annual Global Media & Communications Conference at the Grand Hyatt New York Tuesday morning. The presentation is to be posted on its Web site.

Web sites rip off millions from U.S. newspapers

Wednesday, December 2nd, 2009

A month-long study of how news spreads across the Internet found that the average American newspaper story is copied 4.4 times in full or in part by unauthorized Web sites, The Financial Times says.

The Fair Syndication Consortium, a group of more than 1,500 newspaper publishers, is trying to figure out how to recoup the revenue publishers lose when their articles appear next to advertising that pays the sites using their materials instead of them. A different study last January estimated the loss at $250 million.

Though publishers can force sites to take unauthorized stories down, “the consortium …  is planning to allow the unauthorized stories to stay up, avoiding any disruption to bloggers and readers, but to push for a share of the sites’ revenues,” the Financial Times says.

“But rather than seeking small payments from each of the tens of thousands of sites involved, the publishers plan to lean on the handful of large advertising networks that account for most of the sites’ revenues. They plan to push the ad networks to divert revenue from the sale of ads alongside their stories back to the creators of that content.”

Google accounted for 53 percent of the advertising being run alongside unlicensed stories, while Yahoo accounted for 19 percent. Bloggers, often the primary target of publishers’ anger about how their stories are disseminated online, accounted for less than 10 percent of the unauthorized reuse.

The study apparently did not address how many readers click through unauthorized story links to spend time on the original publishers’ sites, thereby benefiting them and their advertisers.

At the tailend of its stories, FT.com says, “You may share using our article tools. Please don’t cut articles from FT.com and redistribute by e-mail or post to the Web.”

Online ad spending down but rebounding

Friday, November 27th, 2009

Third-quarter online ad spending in the U.S. was down 5.4 percent from the same period a year ago, but up 1.7 percent from the second quarter, Online Media Daily says, quoting the Interactive Advertising Bureau and PricewaterhouseCoopers.

“Spending during the first three quarters of 2009 has been roughly flat as the economic downturn keeps digital ad budgets down after recent years of strong gains. While the fourth quarter is expected to bring a seasonal lift, overall online ad revenue is projected to drop for the first time since 2002.”

Newspapers’ chief says ‘worst has passed’

Friday, November 20th, 2009

“U.S. newspaper industry ad revenue, helped by a slowdown in the drop of print ad sales, fell 28 percent in the third quarter, Newspaper Association of America data show,” according to Bloomberg News. “It was a narrower decline than the previous period.

“… Total ad sales plunged 29 percent in the second quarter.

“’The broad consensus is that the worst has passed,’ NAA Chief Executive Officer John Sturm said in a statement. ‘These numbers are in line with most expectations.’”

Reuters, on the other hand, says, “If AOL’s announcement on Thursday of another 2,500 job cuts is anything to go by, the painful layoffs that have ravaged the media industry over the past year are nowhere near over.

“Newspaper publishers haven’t posted a quarterly gain in ad revenue since the third quarter of 2006,” Bloomberg says.