A 21st CENTURY NEWS & INFORMATION LEADER

 
 

McClatchy Reports January 2007 Revenues

Released 02/23/2007

The McClatchy Company (NYSE: MNI) today reported that consolidated advertising revenues in January 2007 decreased 5.8% and total revenues were down 5.2% compared to pro forma revenues (including the addition of newspapers purchased in the Knight Ridder acquisition and excluding the Minneapolis Star Tribune newspaper).

Pat Talamantes, McClatchy's chief financial officer, said, "We knew going into January that we faced one of the toughest periods for advertising revenue comparisons in the industry given our strong 5.2% growth in pro forma advertising revenues in January 2006. Indeed, January is our toughest monthly comparison for the whole of 2007. So while we are disappointed with an ad revenue decline of 5.8%, we were not surprised by it.

Advertising revenue performance at the company’s newspapers is summarized in McClatchy’s statistical report that follows.

The McClatchy Company is the third largest newspaper company in the United States (after the sale of the Minneapolis Star Tribune newspaper), with 31 daily newspapers and approximately 50 non-dailies. McClatchy-owned newspapers include The Miami Herald, The Sacramento Bee, The Kansas City Star, the (Fort Worth) Star-Telegram, The Charlotte Observer, and The (Raleigh) News & Observer. In addition, McClatchy has a robust network of internet assets, including leading local websites in each of its daily newspaper markets, offering users information, comprehensive news, advertising, e-commerce and other services. The company also owns and operates McClatchy Interactive, an interactive operation that provides websites with content, publishing tools and software development; Real Cities, the largest national advertising network of local news websites and 15.0% of CareerBuilder, the nation’s largest online job site. McClatchy also owns 25.6% of Classified Ventures, a newspaper industry partnership that offers classified websites such as cars.com and apartments.com. McClatchy is listed on the New York Stock Exchange under the symbol MNI.

                           ***The McClatchy Company***
                         Consolidated Statistical Report
                       (In thousands, except for preprints)

January Combined Print Only *Pro Forma *Pro Forma % As Reported *Pro Forma *Pro Forma % Revenues -- Net: 2007 2006 Change 2006 2007 2006 Change

Advertising Retail $ 73,531 $ 73,389 0.2% $23,255 $71,614 $ 72,371 -1.0% National 17,465 21,393 -18.4% 5,718 17,060 20,277 -15.9% Classified Total 68,280 74,629 -8.5% 27,766 56,202 64,198 -12.5% Automotive 14,892 19,422 -23.3% 7,224 12,981 17,905 -27.5% Real Estate 19,492 21,233 -8.2% 9,110 18,216 20,010 -9.0% Employment 25,922 26,000 -0.3% 9,053 17,584 18,807 -6.5% Other Class 7,974 7,974 -0.0% 2,379 7,421 7,476 -0.7% Direct Marketing 13,263 13,619 -2.6% 3,863 13,263 13,619 -2.6% Other Adv Rev 121 242 -50.0% 240 120 242 -50.4% Total Advertising $172,660 $183,272 -5.8% $60,842 $158,259 $170,707 -7.3%

Circulation 27,436 28,147 -2.5% 9,041 Other 6,600 6,617 0.3% 1,569 Total Revenues $206,696 $218,036 -5.2% $71,452

Memo: Online Only Advertising Revenue $14,401 $12,565 14.6% $3,588

Advertising Revenues by Market: California $34,055 $37,888 -10.1% $35,699 $31,666 $35,889 -11.8% Carolinas 42,373 43,226 -2.0% 13,563 38,161 39,530 -3.5% Florida 31,382 34,273 -8.4% 0 29,275 32,181 -9.0% Midwest 22,237 24,520 -9.3% 0 20,075 22,380 -10.3% Northwest 19,091 18,574 2.8% 11,580 17,178 17,178 0.0% Texas 16,894 19,151 -11.8% 0 15,836 18,010 -12.1% Other 6,628 5,640 17.5% 0 6,068 5,539 9.6% Total Advertising $172,660 $183,272 -5.8% $60,842 $158,259 $170,707 -7.3%

Advertising Statistics for Dailies: Full Run ROP Linage 1,090.8 2,708,8 3,086.5 -12.2%

Millions of Preprints Distributed 196.5 1,007.8 572.4 76.1%

Average Paid Circulation:** Daily 2,804.7 2,882.4 -2.7% Sunday 3,466.7 3,599.6 -3.7%

*Pro Forma includes Knight Ridder acquisitions.

**Reflects average paid circulation based upon number of days in period. Does not reflect ABC reported figures.