The McClatchy Co. has revealed its wage freeze will stand until the end of the year instead of the expected return of pay increases in September, the Wichita Business Journal reported Wednesday.

The Sacramento-based publisher of 30 daily newspapers across the United States began a year-long wage freeze in September last year, but the company's treasurer Elaine Lintecum announced that the pay cap would continue at least through December 2009.

The second quarter saw the third largest newspaper chain in the U.S. turn in much improved earnings of US$42.2 million, against $19.7 million a year ago. While cost cutting helped improve profit, advertising decline continued to affect the company, leaving revenue down 25 percent at $365.3 million.

The cost cuts at McClatchy have included reducing its staff by one third, freezing the salaries of staff, including executives, and CEO and Chairman Gary Pruitt has not been given a bonus for the past three years, according to the Business Journal.