The McClatchy Company (NYSE: MNI) today reported that consolidated revenues in October 2008 decreased 17.8% and advertising revenues were down 20.4% compared to revenues in October 2007.
The company noted that the declines in print advertising were partially offset by a 12.4% gain in online advertising revenues in October 2008 compared to October 2007. For the first ten months of the year, total revenues declined 15.5% and advertising revenues declined 17.4%. Online advertising grew 10.9% in the first ten months of 2008.
Pat Talamantes, McClatchy's chief financial officer, said, "October advertising activity turned out to be similar to recent months. The economic slowdown continues to hurt consumer confidence and as a result negatively impacts our advertising customers in the local markets we serve. 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 both in print and online as a result of the nation-wide slow down in hiring, is excluded our online advertising revenue was up 57.6% in October 2008 compared to October 2007."
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)
October
Combined
Revenues - Net: 2008 2007 % Change
Advertising Retail $75,622 $84,923 -11.0% National 15,555 18,056 -13.9% Classified Total 40,363 62,830 -35.8% Automotive 10,302 14,831 -30.5% Real Estate 10,714 18,303 -41.5% Employment 10,658 20,729 -48.6% Other 8,689 8,967 -3.1% Direct Marketing 12,783 15,635 -18.2% Other Advertising 206 158 30.4% Total Advertising $144,529 $181,602 -20.4%
Circulation 25,328 26,221 -3.4% Other 6,186 6,356 -2.7% Total Revenues $176,043 $214,179 -17.8%
Advertising Revenues by Market: California $25,587 $33,275 -23.1% Florida 21,595 27,374 -21.1% Texas 15,416 18,667 -17.4% Southeast 42,318 53,453 -20.8% Midwest 23,122 27,684 -16.5% Northwest 16,484 20,567 -19.9% Other 7 582 -98.8% Total Advertising $144,529 $181,602 -20.4%
Print Only
Revenues - Net: 2008 2007 % Change
Advertising Retail $70,764 $82,518 -14.2% National 13,773 17,071 -19.3% Classified Total 30,627 51,654 -40.7% Automotive 7,536 12,604 -40.2% Real Estate 9,090 16,978 -46.5% Employment 6,205 13,727 -54.8% Other 7,796 8,345 -6.6% Direct Marketing 12,783 15,635 -18.2% Other Advertising 206 158 30.4% Total Advertising $128,153 $167,036 -23.3%
Advertising Revenues by Market: California $22,807 $31,011 -26.5% Florida 19,475 25,730 -24.3% Texas 13,671 17,351 -21.2% Southeast 37,194 48,589 -23.5% Midwest 20,216 25,265 -20.0% Northwest 14,790 18,609 -20.5% Other 0 481 -100.0% Total Advertising $128,153 $167,036 -23.3%
Advertising Statistics for Dailies: Full Run ROP Linage 2,502.8 3,147.7 -20.5%
Millions of Preprints Distributed 585.3 669.0 -12.5%
Average Paid Circulation:* Daily 2,561.7 2,772.7 -7.6% Sunday 3,171.7 3,349.7 -5.3%
Online Only
Revenues - Net: 2008 2007 % Change
Advertising Retail $4,858 $2,405 102.0% National 1,782 985 80.9% Classified Total 9,736 11,176 -12.9% Automotive 2,766 2,227 24.2% Real Estate 1,624 1,325 22.6% Employment 4,453 7,002 -36.4% Other 893 622 43.6% Direct Marketing Other Advertising Total Advertising $16,376 $14,566 12.4%
Advertising Revenues by Market: California $2,780 $2,264 22.8% Florida 2,120 1,644 29.0% Texas 1,745 1,316 32.6% Southeast 5,124 4,864 5.3% Midwest 2,906 2,419 20.1% Northwest 1,694 1,958 -13.5% Other 7 101 -93.1% Total Advertising $16,376 $14,566 12.4%
* 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)
October Year-to-Date
Combined
Revenues - Net: 2008 2007 % Change
Advertising Retail $644,292 $708,801 -9.1% National 123,947 150,990 -17.9% Classified Total 437,149 613,236 -28.7% Automotive 115,092 143,095 -19.6% Real Estate 110,648 176,536 -37.3% Employment 132,546 215,911 -38.6% Other 78,863 77,694 1.5% Direct Marketing 118,191 129,166 -8.5% Other Advertising 1,418 1,726 -17.8% Total Advertising $1,324,997 $1,603,919 -17.4%
Circulation 223,938 235,803 -5.0% Other 56,694 61,387 -7.6% Total Revenues $1,605,629 $1,901,109 -15.5%
Advertising Revenues by Market: California $237,915 $307,392 -22.6% Florida 192,887 248,702 -22.4% Texas 145,273 165,743 -12.4% Southeast 388,093 458,090 -15.3% Midwest 205,959 234,364 -12.1% Northwest 153,978 184,288 -16.4% Other 892 5,340 -83.3% Total Advertising $1,324,997 $1,603,919 -17.4%
Print Only
Revenues - Net: 2008 2007 % Change
Advertising Retail $606,447 $687,856 -11.8% National 110,240 144,619 -23.8% Classified Total 333,320 500,431 -33.4% Automotive 87,687 122,632 -28.5% Real Estate 95,958 163,890 -41.4% Employment 78,577 141,736 -44.6% Other 71,098 72,173 -1.5% Direct Marketing 118,191 129,166 -8.5% Other Advertising 1,418 1,726 -17.8% Total Advertising $1,169,616 $1,463,798 -20.1%
Advertising Revenues by Market: California $212,786 $285,524 -25.5% Florida 171,765 230,846 -25.6% Texas 131,407 153,885 -14.6% Southeast 338,350 411,556 -17.8% Midwest 179,249 212,162 -15.5% Northwest 136,059 165,595 -17.8% Other 0 4,230 -100.0% Total Advertising $1,169,616 $1,463,798 -20.1%
Advertising Statistics for Dailies: Full Run ROP Linage 23,343.7 27,649.9 -15.6%
Millions of Preprints Distributed 5,335.6 5,603.3 -4.8%
Average Paid Circulation:* Daily 2,605.0 2,736.8 -4.8% Sunday 3,226.5 3,380.4 -4.6%
Online Only
Revenues - Net: 2008 2007 % Change
Advertising Retail $37,845 $20,945 80.7% National 13,707 6,371 115.1% Classified Total 103,829 112,805 -8.0% Automotive 27,405 20,463 33.9% Real Estate 14,690 12,646 16.2% Employment 53,969 74,175 -27.2% Other 7,765 5,521 40.6% Direct Marketing Other Advertising Total Advertising $155,381 $140,121 10.9%
Advertising Revenues by Market: California $25,129 $21,868 14.9% Florida 21,122 17,856 18.3% Texas 13,866 11,858 16.9% Southeast 49,743 46,534 6.9% Midwest 26,710 22,202 20.3% Northwest 17,919 18,693 -4.1% Other 892 1,110 -19.6% Total Advertising $155,381 $140,121 10.9%
* Reflects average paid circulation based upon number of days in period. Does not reflect ABC reported figures.
SOURCE The McClatchy Company
