NEW YORK (Reuters) - McClatchy Co posted a better-than-expected quarterly profit, but advertising revenue fell 19 percent because of the weak economy and changes buffeting the newspaper business.
The results illustrate how U.S. newspaper companies are struggling with a deteriorating business and few options for growing revenue. Internet results are improving, but they still cannot compensate for declines in print advertising, long the staple ingredient of their business.
"Our advertising revenues in the third quarter of 2008 continued to be hurt by the weak economy, and, to a lesser extent, the secular shift in advertising to the Internet," Chief Executive Gary Pruitt said in a statement.
The ad climate does not look like it will improve any time soon. So far, October ad revenue is performing similar to September, the Sacramento, California-based McClatchy said.
Still, McClatchy's third-quarter profit, excluding special items, beat Wall Street's expectations by 4 cents a share as the company worked to cut costs and restructure.
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