The McClatchy Co.'s advertising and total revenue dropped almost 10 percent last month, as the nation's third-largest newspaper chain continues to fall victim to dismal housing markets in California and Florida.
The downbeat revenue report disappointed investors in trading Tuesday as shares of McClatchy plummeted 51 cents -- or almost 3.3 percent -- to $14.74, a 52-week low. The company's stock has tumbled 66 percent from its 52-week high, and 77 percent from two years ago.
The Sacramento-based company's October advertising revenue -- everything from automotive classified ads to national retailers -- declined to $214.2 million, a 9.9 percent drop compared to $237.6 million for the same month last year. Advertising in its California and Florida newspapers, which accounted for almost 30 percent of overall revenue last month, fell 18.8 percent and 15.1 percent, respectively.
Classified advertising has been the hardest hit, falling 23 percent -- including a 30 percent decline in real estate-related advertising.
The $214.2 million also includes circulation revenue, about 12 percent of the overall revenue.
Online advertising, considered the all-important and the fastest-growing revenue source for the newspaper industry, fell 4.1 percent in October from a year ago.
For the year, McClatchy's advertising revenue declined 8.5 percent to $1.6 billion, while total revenue including circulation, was off 7.8 percent to $1.9 billion.
"We have seen continued declines in advertising revenues," McClatchy chairman and chief executive officer Gary Pruitt said in a news release. "We are working hard to control costs and expect cash expense to be down in the mid-single digits in the fourth quarter."
[Source: Sacramento Business Journal]
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