SACRAMENTO, Calif., March 17 /PRNewswire-FirstCall/ -- The McClatchy Company today reported that consolidated revenues in February 2008 decreased 11.7% and advertising revenues were down 13.3% compared to revenues in February 2007.
Pat Talamantes, McClatchy's chief financial officer, said, "We continue to see a majority of the decline in advertising revenue from newspapers in California and Florida, two states severely affected by the real estate downturn. We are heartened by the strong growth in online advertising, up 15.9% in February, as we continue to focus on our interactive operations."
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 information, comprehensive news, 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 has a portfolio of premium digital assets. The company owns and operates McClatchy Interactive, an interactive operation that provides websites with content, publishing tools and software development. McClatchy owns 14.4% of CareerBuilder, the nation's largest online job site, and owns 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) February Combined Revenues - Net: 2008 2007 % Change Advertising Retail $62,603 $64,049 -2.3% National 12,462 14,280 -12.7% Classified Total 44,510 59,501 -25.2% Automotive 11,279 13,402 -15.8% Real Estate 11,558 17,963 -35.7% Employment 14,378 21,545 -33.3% Other 7,295 6,591 10.7% Direct Marketing 10,399 12,080 -13.9% Other Advertising 138 101 36.6% Total Advertising $130,112 $150,011 -13.3% Circulation 21,009 22,314 -5.8% Other 5,461 4,912 11.2% Total Revenues $156,582 $177,237 -11.7% Advertising Revenues by Market: California $23,200 $28,850 -19.6% Florida 20,541 25,788 -20.3% Texas 14,239 15,464 -7.9% Southeast 37,935 42,008 -9.7% Midwest 19,632 21,237 -7.6% Northwest 14,494 16,203 -10.5% Other 71 461 -84.6% Total Advertising $130,112 $150,011 -13.3% February Print Only Revenues - Net: 2008 2007 % Change Advertising Retail $59,150 $62,048 -4.7% National 11,017 13,776 -20.0% Classified Total 34,029 48,740 -30.2% Automotive 8,677 11,568 -25.0% Real Estate 10,204 16,731 -39.0% Employment 8,535 14,290 -40.3% Other 6,613 6,151 7.5% Direct Marketing 10,399 12,080 -13.9% Other Advertising 139 102 36.3% Total Advertising $114,734 $136,746 -16.1% Advertising Revenues by Market: California $20,838 $26,818 -22.3% Florida 17,881 23,808 -24.9% Texas 12,935 14,401 -10.2% Southeast 33,283 37,618 -11.5% Midwest 17,062 19,173 -11.0% Northwest 12,735 14,543 -12.4% Other 0 385 -100.0% Total Advertising $114,734 $136,746 -16.1% Advertising Statistics for Dailies: Full Run ROP Linage 2,175.8 2,468.7 -11.9% Millions of Preprints Distributed 508.9 535.2 -4.9% Average Paid Circulation:* Daily 2,737.8 2,846.5 -3.8% Sunday 3,345.8 3,482.1 -3.9% * Reflects average paid circulation based upon number of days in period. Does not reflect ABC reported figures. February Online Only Revenues - Net: 2008 2007 % Change Advertising Retail $3,453 $2,001 72.6% National 1,445 504 186.7% Classified Total 10,480 10,760 -2.6% Automotive 2,602 1,834 41.9% Real Estate 1,354 1,232 9.9% Employment 5,843 7,255 -19.5% Other 681 439 55.1% Direct Marketing Other Advertising Total Advertising $15,378 $13,265 15.9% Advertising Revenues by Market: California $2,361 $2,032 16.2% Florida 2,661 1,980 34.4% Texas 1,305 1,063 22.8% Southeast 4,650 4,391 5.9% Midwest 2,571 2,063 24.6% Northwest 1,759 1,660 6.0% Other 71 76 -6.6% Total Advertising $15,378 $13,265 15.9% ***The McClatchy Company*** Consolidated Statistical Report (In thousands, except for preprints) February Year-to-Date Combined Revenues - Net: 2008 2007 % Change Advertising Retail $130,171 $137,663 -5.4% National 26,351 31,745 -17.0% Classified Total 96,229 128,003 -24.8% Automotive 23,756 28,294 -16.0% Real Estate 24,421 37,646 -35.1% Employment 32,546 47,493 -31.5% Other 15,506 14,570 6.4% Direct Marketing 22,626 25,038 -9.6% Other Advertising 274 223 22.9% Total Advertising $275,651 $322,672 -14.6% Circulation 46,795 49,750 -5.9% Other 10,966 11,511 -4.7% Total Revenues $333,412 $383,933 -13.2% Advertising Revenues by Market: California $49,537 $62,905 -21.3% Florida 42,831 57,170 -25.1% Texas 30,231 32,358 -6.6% Southeast 80,029 89,359 -10.4% Midwest 41,503 44,604 -7.0% Northwest 31,310 35,294 -11.3% Other 210 982 -78.6% Total Advertising $275,651 $322,672 -14.6% February Year-to-Date Print Only Revenues - Net: 2008 2007 % Change Advertising Retail $124,012 $133,745 -7.3% National 23,958 30,835 -22.3% Classified Total 74,628 105,165 -29.0% Automotive 18,625 24,550 -24.1% Real Estate 21,751 35,138 -38.1% Employment 20,164 31,901 -36.8% Other 14,088 13,576 3.8% Direct Marketing 22,626 25,038 -9.6% Other Advertising 273 223 22.4% Total Advertising $245,497 $295,006 -16.8% Advertising Revenues by Market: California $44,734 $58,484 -23.5% Florida 38,586 53,083 -27.3% Texas 27,489 30,237 -9.1% Southeast 70,378 80,334 -12.4% Midwest 36,807 40,281 -8.6% Northwest 27,503 31,721 -13.3% Other 0 866 -100.0% Total Advertising $245,497 $295,006 -16.8% Advertising Statistics for Dailies: Full Run ROP Linage 4,645.0 5,291.2 -12.2% Millions of Preprints Distributed 1,053.3 1,114.6 -5.5% Average Paid Circulation:* Daily 2,719.1 2,821.9 -3.6% Sunday 3,329.1 3,471.5 -4.1% * Reflects average paid circulation based upon number of days in period. Does not reflect ABC reported figures. February Year-to-Date Online Only Revenues - Net: 2008 2007 % Change Advertising Retail $6,159 $3,918 57.2% National 2,394 910 163.1% Classified Total 21,601 22,838 -5.4% Automotive 5,131 3,745 37.0% Real Estate 2,670 2,508 6.5% Employment 12,381 15,593 -20.6% Other 1,419 992 43.0% Direct Marketing Other Advertising Total Advertising $30,154 $27,666 9.0% Circulation Other Total Revenues Advertising Revenues by Market: California $4,803 $4,421 8.6% Florida 4,245 4,087 3.9% Texas 2,742 2,121 29.3% Southeast 9,651 9,024 6.9% Midwest 4,696 4,323 8.6% Northwest 3,807 3,573 6.5% Other 210 117 79.5% Total Advertising $30,154 $27,666 9.0%
