• by Newswire Report , July 16, 2003

Knight Ridder continued the patterns set by the national newspapers yesterday by posting minimal but positive revenue gains for the second quarter. Total advertising revenue for the quarter was $561.4 million, up 0.9% from $556.4 million in the same quarter of 2002. Total operating revenue was $721.6 million, also up 0.9% from the same quarter last year. Total operating profit for the quarter was $150.8 million, down $6.7 million, or 4.2%.

"Consistently strong results in general advertising revenue and consistently strong cost control both contributed to the positive performance," said Tony Ridder, chairman and CEO. "At the same time, a lackluster quarter for retail and ongoing softness in help-wanted advertising reflects the sluggish nature of the overall economy. This pattern of mostly small revenue increases has been in place throughout 2003, and at least for now, I do not see it changing dramatically."

Also continuing an industry pattern, Knight Ridder Digital had a strong second quarter, with revenue of $19.3 million up 35.4% and operating profit of $3.4 million up from a loss of $2.6 million in the same quarter last year.

Breaking down the ad revenue stream by category retail advertising revenue in the quarter was up 1.2%, general was up 20.8% and classified was down 6.2%. Real estate classifieds were up 8.4%. But auto was down 2.2% and help-wanted was down 23.0%. During the quarter, telecom, pharmaceutical and automotive were strong. Computers and high tech were up slightly versus the prior year. Travel was weak, although June gave evidence of increased activity from cruise lines and airlines.