McClatchy earnings fall in second quarter

Culled from Editor & Publisher:

The McClatchy Co. reported its second-quarter net income per share fell to 24 cents from 42 cents in the year ago period, with one-time gains from unusual events unable to offset a continuing slump in ad revenue.

McClatchy's net income for the quarter included a gain on the sale of its interest in SP Newsprint Co., a gain on paying off debt, charges related to its plan to reduce employment by 10%, and the write down of certain Internet ventures, including the sale of its stake in ShopLocal.

McClatchy said revenue for the quarter fell 15.6% to $489.7 million.

Ad revenue was down 16.8% from the year-ago quarter, with online ad revenue up 12.5%. Online accounted for 11.8% of total ad revenue in the quarter, up from 8.6% for all of 2007.

McClatchy said retail ad revenue was off 7.9% for the quarter, while national declined 20.4%.

Classified ad plunged 28.1% on big declines in real estate (down 37.1%), employment (down 39%), and automotive (down 17.8%). McClatchy has been hit especially hard from the housing downturn because it publishes papers in the Florida and California where the collapse of the housing bubble was steepest.

McClatchy said ad revenue for its California papers was off 26.8%, and ad revenue for its Florida properties fell 23.2%.

Circulation revenue fell 5.2% for the quarter, McClatchy said.

Click on the headline to read the E&P story.