McClatchy reports $2.1 million dollar net loss in first quarter

The McClatchy Company

In a new earnings report released this morning, McClatchy announced that revenue was down 5.1 percent over the first quarter of 2011. Some of the costs contributing to the loss were unlikely to be repeated -- $2.9 million "primarily related to relocating Miami newspaper operations" -- but others may return: "Severance charges totaling $1.2 million ($0.7 million after-tax) related to continued restructuring of the company's operations." Operating cash expenses at McClatchy were also down $9 million.

CEO Gary Pruitt, who is leaving McClatchy next month to head the Associated Press, reported advertising revenue overall was down 6.8 percent over the first quarter. Those losses were higher at the beginning of the year than in April, a trend Pruitt said in a release McClatchy was "pleased to see." But digital-only advertising was up 14 percent; bundled digital advertising was up 2.7 percent.

The company's equity investments returned $6 million this quarter. The company says it expects more cost-cutting, lower newsprint costs and a "growing set of products and revenue initiatives, especially in digital and direct marketing advertising" to contribute to a further decline in cash expenses next quarter.

McClatchy's 9.2 percent decline in print advertising revenue is a bit worse than other large newspaper chains' recent earnings reports. The New York Times Company reported first quarter earnings that beat expectations; nonetheless, print advertising revenues were down 7.2 percent across its properties. Media General posted a net loss of 23 percent in its first quarter earnings with print advertising down 8.4 percent. Gannett, too, had a poor first quarter, with earnings down 24 percent and an 8.3 percent drop in print advertising.

  • Andrew Beaujon

    Andrew Beaujon reported on the media for Poynter from 2012 to 2015. He was previously arts editor at and managing editor of Washington City Paper. He's the author of the 2006 book "Body Piercing Saved My Life," about Christian rock and evangelical Christian culture.


Related News

Email IconGroup 3Facebook IconLinkedIn IconsearchGroupTwitter IconGroup 2YouTube Icon