McClatchy sees wider rev­enue, profit de­clines in the third quar­ter

The Sacramento Bee - - Business - BY MICHAEL FINCH II

The McClatchy Co. re­ported Fri­day a net loss of $23.8 mil­lion and a 10 per­cent drop in rev­enue in the third quar­ter while also see­ing a rise in dig­i­tal sub­scrip­tions.

The Sacra­mento-based pub­lisher of 30 daily news­pa­pers also saw a 48 per­cent year-over-year in­crease in dig­i­tal sub­scribers in part be­cause of a new sports-only sub­scrip­tions of­fer­ing. The com­pany ended the quar­ter with 137,000 dig­i­talonly sub­scribers.

To­tal ad­ver­tis­ing rev­enues were down 17.5 per­cent but dig­i­tal-only ad­ver­tis­ing rev­enues grew by 9 per­cent.

McClatchy also sold its re­main­ing in­ter­est in the web­site Ca­reerBuilder for $5.3 mil­lion.

“While head­winds in print news­pa­per ad­ver­tis­ing re­main strong, this trend in our dig­i­tal rev­enue sig­nals that our re­lent­less fo­cus on dig­i­tal trans­for­ma­tion con­tin­ues to be an ef­fec­tive strat­egy for sus­tain­abil­ity and fu­ture growth,” CEO Craig For­man said in a pre­pared state­ment.

McClatchy is one of three bid­ders vy­ing to pur­chase Tri­bune Pub­lish­ing, a legacy news­pa­per chain briefly known as Tronc, ac­cord­ing to news re­ports. For­man, dur­ing an earn­ings call with in­vestors, de­clined to com­ment.

McClatchy’s shares opened trad­ing at $7.35.

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