McClatchy Ad Revenues Tumble 9%

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The newspaper business is not getting any relief in 2011, as multiple publishers report continuing declines in print ad revenue. This week the McClatchy Co. joined the New York Times Co., Gannett, and Media General, all of which have seen total revenues fall by single-digit percentages.

McClatchy Co. revealed that total revenues declined 8.1% from $342 million in the second quarter of 2010 to $314.3 million in the second quarter of 2011. This drop was due mostly to a 9.4% drop in advertising revenues, which fell from $260.5 million to $236 million over the same period.

Circulation revenues also decreased 3.7% to $65.1 million, reflecting a 3.4% decline in daily circulation.

Advertising declines were spread across all the major categories.

Retail advertising fell 9.4% from $133.5 million to $120.9 million; national fell 21.6% from $23.6 million to $18.5 million; and classifieds fell 10.3% from $73.1 million to $65.5 million. Within the classifieds category, automotive fell 2.2% to $20.6 million, real estate plunged 20.2% to $11.8 million and employment sank 6% to $14 million.

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All these figures represent print and digital revenues combined. Total print advertising sank 11.8%, from $213.6 million to $188.3 million.

As in previous quarters, digital advertising was a bright spot, although growth was modest due to the decline in "bundled" sales combining print and digital placement. Total digital advertising increased 1.6% to $47.7 million in the second quarter, just over 20% of McClatchy's total advertising revenue.

For the first half of 2011, total revenues fell 8.8% from $677.6 million to $618 million, with total ad revenues tumbling 10.2% from $513.4 million to $461.1 million. Circulation revenues in the first six months of 2011 fell 4.4% to $131.3 million.

As noted, other newspaper companies have also reported weak second-quarter results. NYTCO's total revenues slipped 2.2% to $576.7 million in the second quarter of 2011, due mostly to a 4% decrease in overall advertising revenues to $302.3 million.

Gannett's publishing division saw total revenues decline 4.9% to $977.1 million in the second quarter of 2011 -- due mostly to the drop in ad revenues, which fell 6.5% to $646.9 million over the same period.

Total revenues at Media General declined 6.8% from $166.2 million in the second quarter of 2010 to $154.8 million in the second quarter of 2011, due to a 9.7% drop in print advertising revenue from $82.9 million to $74.8 million.

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