McClatchy Says Revenue Decline Easing, Stock Up

NEW YORK — Newspaper publisher McClatchy Co. said Tuesday that its revenue isn't declining as much over the past two months. Its stock rose more than 5 percent on the news.

McClatchy's revenue fell 8 percent in April and May compared with a year earlier. That's better than the 9.5 percent decline in the first three months of this year.

McClatchy publishes The Miami Herald, The Sacramento Bee in California and other newspapers. Like its peers, McClatchy has been hurt by a weak economy and a shift by advertisers to cheaper alternatives on the Internet.

The company's advertising revenue fell 9 percent in April and May. The decline was sharper, at 11 percent, during the first three months of 2011. The company said retail advertising improved because the Easter holiday came later this year.

McClatchy, which is based in Sacramento, Calif., also said that its earlier offer to repurchase $65 million of its 2017 senior secured notes will expire on Friday. It plans to release its second-quarter results on July 28.

McClatchy's shares climbed 12 cents, or 5.1 percent, to $2.48 Tuesday. The stock has traded from $2.30 to $5.61 in the past 52 weeks.

Comments

[ThinkGlobal]

01:45 PM on 06/22/2011

Young people don't buy the majority newspapers sold today but older Americans do. However the newspaper print keeps getting smaller and smaller and smaller. Pretty soon older Americans will not be able to buy newpapers because they will not be able to afford new eyeglasses prescriptions.

[noaxe397]

01:48 AM on 06/22/2011

McClatchey, formerly Knight -Ritter, is the finest chain in the country because it does not publish in the major "beltway" cities like NY, LA and DC. They do some of the finest investigative journalism in America today.

[mediamarv]

09:56 PM on 06/21/2011

Interesting juxtaposition of newspaper stories, what with Gannett leading the page...

[SnapShots]

07:48 PM on 06/21/2011

Good to hear. We can't afford to lose newspapers like the Sacramento Bee and the Miami Herald. Up until 2004, newspapers were way top heavy. They have been shedding fat ever since to survive amid declining revenues. Notice the story didn't say McClatchy is not profitable. They are just not a profitable as they used to be.

[dsa1115]

05:48 PM on 06/21/2011

Only 2 newspapers worth buying, The Wall Street Journal and The New York Times.

[Big0725]

07:26 PM on 06/21/2011

In your opinion I'm guessing.

[givemtheirwish]

12:00 PM on 06/22/2011

50% correct is better than 0%....................

[rascalcat]

05:41 PM on 06/21/2011

McClatchy is one of the few news services I bother with any more. UPI is showing a right leaning corporate bias as does most of the MSM. The problem is too much fluff and sensationalism, not enough in-depth investigative reporting that might be controversial to advertisers.

[stillfresh]

04:40 PM on 06/21/2011

Oh, so that's why McClatchy sold the Miami Herald building on Biscayne Bay. It was to fund the pension, which was obviously underfunded. And sold it for a song. The Miami Herald newsroom will be moved to an office park or the floor of a downtown building and McClatchy will become just another tenant.

[Big0725]

07:27 PM on 06/21/2011

And pocket $220 million for a dilapidated and obsolete building. Are you familiar with the area?

[Big0725]

07:35 PM on 06/21/2011

Sorry, I was in error. $236 million. And that's a pretty sweet song. I wish I could sing it.

[Laura K Braun Weldon]

02:30 PM on 06/21/2011

Two words. Coupon Inserts.