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Friday March 12, 2010
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Friday March 12, 2010
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Released: 08/20/2008
SACRAMENTO, Calif., Aug. 20 -- The McClatchy Company (NYSE: MNI) today reported that consolidated revenues in July 2008 decreased 16.4% and advertising revenues were down 19.3% compared to revenues in July 2007. The Company noted that the declines in print advertising were partially offset by a 12.8% gain in online advertising revenues in July 2008 compared to July 2007. For the first seven months of the year, total revenues declined 15.0% and advertising revenues declined 16.5%. Online advertising grew 11.7% in the first seven months of 2008.Pat Talamantes, McClatchy's chief financial officer, said, "As we anticipated, July advertising activity turned out to be only slightly better than June. Online advertising continues to be a bright spot for the company, with online advertising up in all categories except employment advertising. In fact, when employment advertising, which has declined nationally both in print and online, is excluded our online advertising was up 58.5% in July and was up 56.0% in the first seven 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)
July
Combined
Revenues - Net: 2008 2007 % Change
Advertising Retail $65,915 $75,299 -12.5% National 11,618 14,560 -20.2% Classified Total 46,330 65,673 -29.5% Automotive 12,459 15,756 -20.9% Real Estate 11,471 18,453 -37.8% Employment 13,604 22,184 -38.7% Other 8,796 9,280 -5.2% Direct Marketing 12,750 13,724 -7.1% Other Advertising 177 179 -1.1% Total Advertising $136,790 $169,435 -19.3%
Circulation 24,307 25,661 -5.3% Other 6,706 5,576 20.3% Total Revenues $167,803 $200,672 -16.4%
Advertising Revenues by Market: California $25,565 $32,886 -22.3% Florida 18,471 24,577 -24.8% Texas 15,116 17,557 -13.9% Southeast 40,029 48,805 -18.0% Midwest 21,459 25,174 -14.8% Northwest 16,043 19,847 -19.2% Other 107 589 -81.8% Total Advertising $136,790 $169,435 -19.3%
Print Only
Revenues - Net: 2008 2007 % Change
Advertising Retail $61,971 $73,286 -15.4% National 10,286 14,048 -26.8% Classified Total 35,248 53,701 -34.4% Automotive 9,548 13,524 -29.4% Real Estate 9,823 17,093 -42.5% Employment 7,963 14,447 -44.9% Other 7,914 8,637 -8.4% Direct Marketing 12,750 13,724 -7.1% Other Advertising 177 179 -1.1% Total Advertising $120,432 $154,938 -22.3%
Advertising Revenues by Market: California $22,715 $30,494 -25.5% Florida 16,363 22,959 -28.7% Texas 13,676 16,315 -16.2% Southeast 34,933 43,965 -20.5% Midwest 18,619 22,850 -18.5% Northwest 14,126 17,873 -21.0% Other 0 482 -100.0% Total Advertising $120,432 $154,938 -22.3%
Advertising Statistics for Dailies: Full Run ROP Linage 2,501.8 3,061.2 -18.3%
Millions of Preprints Distributed 545.7 600.5 -9.1%
Average Paid Circulation:* Daily 2,444.1 2,583.3 -5.4% Sunday 3,109.3 3,278.7 -5.2%
Online Only
Revenues - Net: 2008 2007 % Change
Advertising Retail $3,944 $2,013 95.9% National 1,332 512 160.2% Classified Total 11,082 11,972 -7.4% Automotive 2,911 2,232 30.4% Real Estate 1,648 1,360 21.2% Employment 5,641 7,737 -27.1% Other 882 643 37.2% Direct Marketing Other Advertising Total Advertising $16,358 $14,497 12.8%
Advertising Revenues by Market: California $2,850 $2,392 19.1% Florida 2,108 1,618 30.3% Texas 1,440 1,242 15.9% Southeast 5,096 4,840 5.3% Midwest 2,840 2,324 22.2% Northwest 1,917 1,974 -2.9% Other 107 107 0.0% Total Advertising $16,358 $14,497 12.8%
* 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)
July Year-to-Date
Combined
Revenues - Net: 2008 2007 % Change
Advertising Retail $453,170 $494,828 -8.4% National 86,525 105,776 -18.2% Classified Total 321,685 442,285 -27.3% Automotive 83,843 101,689 -17.5% Real Estate 81,306 128,364 -36.7% Employment 100,468 158,211 -36.5% Other 56,068 54,021 3.8% Direct Marketing 84,770 90,616 -6.5% Other Advertising 990 1,230 -19.5% Total Advertising $947,140 $1,134,735 -16.5%
Circulation 158,227 167,248 -5.4% Other 40,402 45,274 -10.8% Total Revenues $1,145,769 $1,347,257 -15.0%
Advertising Revenues by Market: California $169,078 $220,598 -23.4% Florida 139,442 179,374 -22.3% Texas 104,207 116,743 -10.7% Southeast 277,308 319,921 -13.3% Midwest 146,693 164,139 -10.6% Northwest 109,557 130,319 -15.9% Other 855 3,641 -76.5% Total Advertising $947,140 $1,134,735 -16.5%
Print Only
Revenues - Net: 2008 2007 % Change
Advertising Retail $427,447 $480,382 -11.0% National 77,258 102,085 -24.3% Classified Total 246,643 361,939 -31.9% Automotive 64,726 87,773 -26.3% Real Estate 71,131 119,520 -40.5% Employment 60,101 104,410 -42.4% Other 50,685 50,236 0.9% Direct Marketing 84,770 90,616 -6.5% Other Advertising 990 1,230 -19.5% Total Advertising $837,108 $1,036,252 -19.2%
Advertising Revenues by Market: California $151,505 $205,026 -26.1% Florida 124,412 166,425 -25.2% Texas 94,618 108,618 -12.9% Southeast 241,913 287,277 -15.8% Midwest 128,041 148,750 -13.9% Northwest 96,619 117,175 -17.5% Other 0 2,981 -100.0% Total Advertising $837,108 $1,036,252 -19.2%
Advertising Statistics for Dailies: Full Run ROP Linage 16,665.3 19,528.6 -14.7%
Millions of Preprints Distributed 3,613.4 3,925.8 -8.0%
Average Paid Circulation:* Daily 2,634.2 2,744.4 -4.0% Sunday 3,252.7 3,397.8 -4.3%
Online Only
Revenues - Net: 2008 2007 % Change
Advertising Retail $25,723 $14,446 78.1% National 9,267 3,691 151.1% Classified Total 75,042 80,346 -6.6% Automotive 19,117 13,916 37.4% Real Estate 10,175 8,844 15.0% Employment 40,367 53,801 -25.0% Other 5,383 3,785 42.2% Direct Marketing Other Advertising Total Advertising $110,032 $98,483 11.7%
Advertising Revenues by Market: California $17,573 $15,572 12.8% Florida 15,030 12,949 16.1% Texas 9,589 8,125 18.0% Southeast 35,395 32,644 8.4% Midwest 18,652 15,389 21.2% Northwest 12,938 13,144 -1.6% Other 855 660 29.5% Total Advertising $110,032 $98,483 11.7%
* Reflects average paid circulation based upon number of days in period. Does not reflect ABC reported figures.
SOURCE The McClatchy Company
The McClatchy Company