The McClatchy Company (NYSE: MNI) today reported that consolidated revenues in April 2008 decreased 14.6% and advertising revenues were down 14.8% compared to revenues in April 2007.
The Company noted that the declines in print advertising were partially offset by a 14.3% gain in online advertising revenues in April 2008 compared to April 2007. For the first four months of the year, total revenues declined 14.0% and advertising revenues declined 15.2%. Online advertising grew 11.6% in the first four months of 2008.
Advertising revenue performance at the company's newspapers is summarized in McClatchy's statistical report that follows.
About McClatchy
The McClatchy Company is the third largest newspaper company in the United States, with 30 daily newspapers, approximately 50 non-dailies, and direct marketing and direct mail operations. McClatchy also operates leading local websites in each of its markets which extend its audience reach. The websites offer users comprehensive news and information, advertising, e-commerce and other services. Together with its newspapers and direct marketing products, these interactive operations make McClatchy the leading local media company in each of its premium high growth markets. McClatchy-owned newspapers include The Miami Herald, The Sacramento Bee, the Fort Worth Star-Telegram, The Kansas City Star, The Charlotte Observer, and The (Raleigh) News & Observer.
McClatchy also owns a portfolio of premium digital assets, including 14.4% of CareerBuilder, the nation's largest online job site, and 25.6% of Classified Ventures, a newspaper industry partnership that offers two of the nation's premier classified websites: the auto website, cars.com, and the rental site, apartments.com. McClatchy is listed on the New York Stock Exchange under the symbol MNI.
Additional Information:
Statements in this press release regarding future financial and operating results, including revenues, operating expenses, cash flows, debt levels, as well as future opportunities for the company and any other statements about management's future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words "believes," "plans," "anticipates," "expects," estimates and similar expressions) should also be considered to be forward-looking statements. There are a number of important risks and uncertainties that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including: the duration and depth of an economic recession in markets where McClatchy operates its newspapers may reduce its income and cash flow greater than expected; McClatchy may not consummate contemplated transactions which may enable debt reduction on anticipated terms or at all; McClatchy may not achieve its expense reduction targets or may do harm to its operations in attempting to achieve such targets; McClatchy's operations have been, and will likely continue to be, adversely affected by competition, including competition from internet publishing and advertising platforms; McClatchy's expense and income levels could be adversely affected by changes in the cost of newsprint and McClatchy's operations could be negatively affected by any deterioration in its labor relations, as well as the other risks detailed from time to time in the Company's publicly filed documents, including the Company's Annual Report on Form 10-K for the year ended December 30, 2007, filed with the U.S. Securities and Exchange Commission. McClatchy disclaims any intention and assumes no obligation to update the forward-looking information contained in this release.
***The McClatchy Company*** Consolidated Statistical Report (In thousands, except for preprints)
April Combined
Revenues - Net: 2008 2007 % Change
Advertising Retail $78,582 $80,860 -2.8% National 13,916 17,143 -18.8% Classified Total 52,922 73,063 -27.6% Automotive 13,180 16,030 -17.8% Real Estate 14,082 21,689 -35.1% Employment 16,213 26,516 -38.9% Other 9,447 8,828 7.0% Direct Marketing 14,134 16,232 -12.9% Other Advertising 177 241 -26.6% Total Advertising $159,731 $187,539 -14.8%
Circulation 25,866 27,136 -4.7% Other 6,633 10,467 -36.6% Total Revenues $192,230 $225,142 -14.6%
Advertising Revenues by Market: California $28,264 $35,621 -20.7% Florida 21,874 28,342 -22.8% Texas 17,745 19,500 -9.0% Southeast 47,785 53,521 -10.7% Midwest 25,148 27,631 -9.0% Northwest 18,793 22,108 -15.0% Other 122 816 -85.0% Total Advertising $159,731 $187,539 -14.8%
April Print Only
Revenues - Net: 2008 2007 % Change
Advertising Retail $74,290 $78,776 -5.7% National 12,450 16,657 -25.3% Classified Total 41,142 60,295 -31.8% Automotive 10,351 13,964 -25.9% Real Estate 12,434 20,322 -38.8% Employment 9,875 17,825 -44.6% Other 8,482 8,184 3.6% Direct Marketing 14,134 16,232 -12.9% Other Advertising 178 242 -26.4% Total Advertising $142,194 $172,202 -17.4%
Advertising Revenues by Market: California $25,436 $33,157 -23.3% Florida 19,515 26,442 -26.2% Texas 16,322 18,312 -10.9% Southeast 42,123 48,550 -13.2% Midwest 22,057 25,186 -12.4% Northwest 16,741 20,075 -16.6% Other 0 480 -100.0% Total Advertising $142,194 $172,202 -17.4%
Advertising Statistics for Dailies: Full Run ROP Linage 2,763.6 3,309.0 -16.5%
Millions of Preprints Distributed 605.2 617.6 -2.0%
Average Paid Circulation:* Daily 2,700.4 2,787.7 -3.1% Sunday 3,304.9 3,419.9 -3.4%
April Online Only
Revenues - Net: 2008 2007 % Change
Advertising Retail $4,292 $2,084 106.0% National 1,465 486 201.4% Classified Total 11,780 12,767 -7.7% Automotive 2,829 2,066 36.9% Real Estate 1,648 1,367 20.6% Employment 6,337 8,691 -27.1% Other 966 643 50.2% Direct Marketing Other Advertising Total Advertising $17,537 $15,337 14.3%
Advertising Revenues by Market: California $2,828 $2,464 14.8% Florida 2,358 1,900 24.1% Texas 1,423 1,188 19.8% Southeast 5,662 4,971 13.9% Midwest 3,091 2,445 26.4% Northwest 2,052 2,033 0.9% Other 123 336 -63.4% Total Advertising $17,537 $15,337 14.3%
* Reflects average paid circulation based upon number of days in period. Does not reflect ABC reported figures.
***The McClatchy Company*** Consolidated Statistical Report (In thousands, except for preprints)
April Year-to-Date Combined
Revenues - Net: 2008 2007 % Change
Advertising Retail $269,339 $287,048 -6.2% National 52,140 62,294 -16.3% Classified Total 193,132 261,734 -26.2% Automotive 48,565 58,185 -16.5% Real Estate 49,504 76,876 -35.6% Employment 62,654 96,234 -34.9% Other 32,409 30,439 6.5% Direct Marketing 48,564 52,877 -8.2% Other Advertising 580 610 -4.9% Total Advertising $563,755 $664,563 -15.2%
Circulation 93,730 99,015 -5.3% Other 23,029 28,122 -18.1% Total Revenues $680,514 $791,700 -14.0%
Advertising Revenues by Market: California $99,345 $128,107 -22.5% Florida 84,616 110,523 -23.4% Texas 62,697 67,941 -7.7% Southeast 165,448 186,272 -11.2% Midwest 86,354 94,768 -8.9% Northwest 64,784 74,681 -13.3% Other 511 2,271 -77.5% Total Advertising $563,755 $664,563 -15.2%
April Year-to-Date Print Only
Revenues - Net: 2008 2007 % Change
Advertising Retail $255,084 $279,071 -8.6% National 46,975 60,404 -22.2% Classified Total 149,452 215,059 -30.5% Automotive 37,965 50,473 -24.8% Real Estate 43,851 71,824 -38.9% Employment 38,292 64,447 -40.6% Other 29,344 28,315 3.6% Direct Marketing 48,564 52,877 -8.2% Other Advertising 579 609 -4.9% Total Advertising $500,654 $608,020 -17.7%
Advertising Revenues by Market: California $89,455 $119,201 -25.0% Florida 76,014 102,781 -26.0% Texas 57,182 63,502 -10.0% Southeast 144,956 167,543 -13.5% Midwest 75,924 85,966 -11.7% Northwest 57,123 67,296 -15.1% Other 0 1,731 -100.0% Total Advertising $500,654 $608,020 -17.7%
Advertising Statistics for Dailies: Full Run ROP Linage 9,722.9 11,215.8 -13.3%
Millions of Preprints Distributed 2,137.8 2,297.0 -6.9%
Average Paid Circulation:* Daily 2,712.5 2,818.4 -3.8% Sunday 3,321.8 3,463.7 -4.1%
April Year-to-Date Online Only
Revenues - Net: 2008 2007 % Change
Advertising Retail $14,256 $7,977 78.7% National 5,165 1,890 173.3% Classified Total 43,680 46,676 -6.4% Automotive 10,601 7,712 37.5% Real Estate 5,653 5,052 11.9% Employment 24,361 31,787 -23.4% Other 3,065 2,125 44.2% Direct Marketing Other Advertising Total Advertising $63,101 $56,543 11.6%
Advertising Revenues by Market: California $9,890 $8,906 11.0% Florida 8,602 7,741 11.1% Texas 5,515 4,438 24.3% Southeast 20,492 18,730 9.4% Midwest 10,430 8,802 18.5% Northwest 7,661 7,385 3.7% Other 511 541 -5.5% Total Advertising $63,101 $56,543 11.6%
* Reflects average paid circulation based upon number of days in period. Does not reflect ABC reported figures.
SOURCE The McClatchy Company
