McClatchy’s Revenue Drops Get Smaller

Revenue at McClatchy (NYSE: MNI), the major newspaper publisher, keeps shrinking — but at a slower rate — as the ad market gets stronger. The company said revenue dropped 6.4 percent to $365.3 million during the quarter, an improvement from the 8.2 percent drop it had reported three months ago. Net income, however, was down 83 percent.

McClatchy CEO Gary Pruitt said the company continues to see “signs of recovery” noting that employment advertising, for instance, was up in May and then again in June for the first time in four years. Pruitt also said that classified advertising was up in several McClatchy markets.

Overall, online advertising sales inched up 0.6 percent, helped by a 5.2 percent increase in online employment ads and 4.6 percent increase in online national advertising. Those gains, however, were offset by a 9.9 percent drop in total print advertising, which declined across all categories, and overall ad revenue was down 8.2 percent. The company said it expected that figure to drop to the “mid-single digits” next quarter.