McClatchy second-quarter report reflects drop in earnings, increase in subscribers
McClatchy's latest earnings report shows it earned $11.8 million in the second quarter compared to $26.9 million in the same quarter last year. Last year's second quarter results were boosted by a $7.9 million tax gain, the Associated Press reports.
The earnings report explains:
Total revenues in the second quarter of 2013 were $308.8 million, down 3.5% from the second quarter of 2012. Circulation revenues were $88.5 million, up 4.8% and advertising revenues were $207.7 million, down 6.7% from the same quarter in 2012. Total digital-only revenues, which include digital-only revenues from advertising and circulation, were up 10.6% compared to the same quarter last year.
After the first quarter this year, McClatchy had 22,000 digital-only subscribers. That number grew by more than 3,000 in the second quarter. McClatchy President and CEO Pat Talamantes said in the earnings report:
We believe that we will continue to benefit in the future as our efforts to build our circulation revenues gain even more traction. The subscriber response to our new digital subscription packages, known as our Plus Program, exceeded our initial expectations and we are on target to meet our guidance of generating approximately $25 million in new revenues in 2013. In total, the Plus Program provided more than $8 million in incremental revenues contributing to the 4.8% growth in total circulation revenues for the quarter. Our digital audiences grew during the quarter, with new digital-only subscriptions from the Plus Program now totaling more than 25,000.