The McClatchy Co. reported higher quarterly profits today amid signs that its lengthy revenue slump is easing.
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Sacramento-based
McClatchy, which owns The Bee, said income from continuing operations
rose to $43.2 million in the fourth quarter from $33.5 million a year
earlier. Bottom line net income grew even more sharply, to $42 million
from $14.8 million, because the year-ago results included a big
write-down of some Florida land holdings.
Per-share earnings rose to 49 cents from 17 cents.
McClatchy said fourth quarter revenue fell 5 percent, to $351.4 million. Ad revenue
was off 5.7 percent, one of the smallest declines in years. Just three
months ago, McClatchy's ad sales were dropping 10 percent from the year
before.
"We were pleased to see our advertising revenue results
improve in the fourth quarter," said Chairman and Chief Executive Gary
Pruitt in a prepared statement.
The results beat Wall Street's
expectations. Analysts were projecting profits of 40 cents a share and
revenue of $347.8 million, according to Thomson.
Pruitt said the
improving ad trends were led by retailing, direct marketing and national
ads, and "we also posted strong growth in digital-only advertising."
He
added, "The fourth quarter reflected one of the strongest holiday
seasons in recent years, and we were not suprised to see the momentum
slow somewhat in January. Advertising revenues in January were down 7.9
percent compared to January 2011."
McClatchy stock jumped 35 cents to $2.59 a share in early New York Stock Exchange trading.
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