• by Erik Sass  @eriksass1, October 25, 2013

Newspaper publisher McClatchy Co. and magazine publisher Meredith Corp. both reported their third-quarter results: McClatchy’s revenues are down and Meredith is up slightly. Print advertising continues to be a drag on both publishers’ results, but digital advertising and circulation revenues are growing.
 
McClatchy reported that total revenues fell 4.2% from $306 million in the third quarter of 2012 to $293.6 million in the third quarter of 2013, due mostly to the continuing decline in advertising revenues -- down 8.1% from $212 million to $194.9 million over the same period.

However, digital advertising revenues increased 10.6% to $49 million -- around a quarter of McClatchy’s total advertising revenues -- thanks to an 18.1% increase in automotive advertising and 11.1% in retail advertising. On the print side, for the year-to-date, retail ad revenues are down 11.7% to $238.6 million, national is down 7.5% to $31.9 million, and classifieds are down 12.9% to $92 million.
 
Circulation revenues in the third quarter increased 6.5% from $81.6 million to $87 million, reflecting the success of McClatchy’s digital subscription strategy, which began rolling out online paywalls for the company’s newspaper sites last year. According to McClatchy CEO Pat Talamantes, the digital sub initiative, known as the Plus Program, generated $8 million in additional revenues in the third quarter and $22.6 million in the first three quarters of the year.
 
Talamantes also pointed to the success of McClatchy’s direct marketing business, which grew 5.3% and contributed 15.8% of total advertising revenues in the third quarter.
 
Meredith Corp. reported that total revenues increased 1% to $356 million in the third quarter of 2013. Meredith’s Local Media Group, including a number of broadcast TV stations, saw total ad revenues increase 3% to $90 million, while its National Media Group, which includes the company’s women’s interest magazines, saw total ad revenues increase 1% to $134 million, due mostly to growth at its parenthood titles -- Parents, American Baby and FamilyFun -- along with EveryDay With Rachael Ray and Allrecipes, acquired from Reader’s Digest Association in 2011.

The company’s toal digital advertising revenues increased 12%, with National Media Group digital ad revenues up 10%, and Local Media digital revenues up 25%.
 
Meredith’s brand licensing revenues increased 10%, due primarily to increased sales of Better Homes and Gardens licensed products at Walmart, but this growth was partly offset by lower revenues at its Xcelerated Marketing division .