McClatchy posts lower 3Q earnings, revenue

Friday, October 26, 2012, Vol. 36, No. 43

SACRAMENTO, Calif. (AP) — The McClatchy Co. reported lower net income in the third quarter, hurt by declining circulation and ad revenue at its newspapers.

The owner of The Miami Herald, The Sacramento Bee and other newspapers said Thursday that it earned $5.1 million, or 6 cents per share, in the July-September period. That's down 46 percent from $9.4 million, or 11 cents per share, in the same period a year earlier.

Revenue fell 4 percent to $287.5 million from $300.2 million.

Circulation revenue slid 2 percent to $62.8 million from $64.1 million.

Advertising revenue fell 5.4 percent to $212 million from $224.2 million a year ago.

The company said its results show that it's "making progress in an uncertain economy." Third-quarter revenue declined at a slower pace than in the first quarter of this year, when it dropped 6.8 percent. In the second quarter ad revenue was down 5.7 percent.

"We were particularly pleased to see continued growth in our digital advertising revenues and are excited about initiatives under way to pursue new revenue in both advertising and subscriptions," said McClatchy president and CEO Pat Talamantes in a statement.

Shares slid 4 cents to $2.57 in afternoon trading.