• by adam.m , Michael Deibert , July 18, 2005

The McClatchy Company last week reported record second-quarter earnings totaling $44.2 million--up from $40.1 million for the second quarter of 2004--and saw the value of their stock climb from 86 cents to 94 cents over the same period. Advertising revenues climbed 3.0% to $255.5 million, while circulation revenues dipped slightly, arriving at $41.0 million--a 2.2% decrease from the previous year.

Based in Sacramento, CA, the McClatchy Company publishes 12 daily and 17 community newspapers totaling a combined average daily circulation of 1.4 million, and 1.9 million for Sunday editions.

A company spokesperson credited the perk in advertising activity in McClatchy's newspapers for the positive numbers.

"We invest in growth markets, and those growth markets are diversified around the country," said Elaine Lintecum, McClatchy's treasurer and investor relations officer. "In the future, we think that we will see an increase in Internet-related advertising--primarily classified advertising--with employment ads being the biggest generator, but also direct mail advertising. Within the retail sector, pre-print advertising had also been fairly strong."

McClatchy's performance did not appear to be affected negatively by a lawsuit filed against the company on June 28th in Minneapolis, where four employment agencies alleged circulation misstatements by McClatchy's Star Tribune newspaper in that city. Although the plaintiffs--one of who had been previously sued by McClatchy for delinquent payments--are seeking class action status, no decision has yet been rendered in the case.