Wednesday, April 25, 2012

McClatchy reports Q1 earnings: a net loss on the quarter as advertising revenue falls a further 6.8%

The owner of the Miami Herald and Sacramento Bee, The McClatchy Company, today reported its first quarter earnings. The media company said that it recorded a net loss on the quarter of $2.1 million on total revenue of $288 million, a decline of 5.1 percent.

Advertising revenue continues to fall at the newspaper publisher. McClatchy saw its ad revenue decline a further 6.8 percent in the first quarter of 2012. Last year, McClatchy reported that its ad revenue fell 11 percent, and in 2010 its Q1 ad revenue fell 11.1 percent, though the company did report a profit that quarter.

"We continue to make progress on our digital initiatives and the strong revenue results in the quarter demonstrate that digital continues to be a high-growth opportunity for the company," McClatchy's CEO Gary Pruitt said in the statement accompanying the earnings report.

"Digital-only advertising revenue increased 14.0 percent in the quarter. Total digital advertising, which includes digital advertising both bundled with print and sold on a stand-alone basis, increased 2.7 percent compared to the 2011 quarter," Pruitt said.

Pruitt said that digital ad revenue now accounts for 22.2 percent of all ad revenue – I calculate that to be $46.6 million. Last year, digital accounted for 20.1 percent of all ad revenue, or $45.2 million. If your math is good you can see that print print revenue fell about 9.2 percent in the quarter.

Pruitt is leaving McClatchy on May 16 to become president and CEO of The Associated Press. His replacement will be Pat Talamantes, the current CFO.