McClatchy doubles year-on-year 2Q profits
Posted by Simon Day on July 22, 2009 at 10:53 AM
U.S. newspaper publisher McClatchy Co. has announced that its second-quarter net profits are more than double that of the same period for 2008, the Wall Street Journal reported Wednesday.
On the back of much lower expenses McClatchy registered a second quarter net income of US$42.2 million, or 50 cents a share. This is more than twice the $19.7 million profit for the 2nd quarter of 2008. The announcement reveals that while print advertising is still struggling, its steady decline appears to have stopped.
On the back of much lower expenses McClatchy registered a second quarter net income of US$42.2 million, or 50 cents a share. This is more than twice the $19.7 million profit for the 2nd quarter of 2008. The announcement reveals that while print advertising is still struggling, its steady decline appears to have stopped.
The company owns more than 30 newspapers across the U.S. and has made
extensive cost cutting moves to alleviate the effect of lost
advertising revenue.
McClatchy's newspapers include the Miami Herald, Sacramento Bee and Kansas City Star, which are the publications that have suffered the most during the industry and economic declines.
Advertising revenue for the second quarter stayed stable, reporting a similar 30 percent, year-to-year decline as the seen in the first three months of 2009. The company also said it had experienced an improving advertising market, similar to a statement last week by publisher Gannett Co., Inc., according to the Wall Street Journal.
The cost cuts by McClatchy included reducing its staff bass by around a third over the last 12 months, and has allowed the company to release pressure from its $2 billion debt load and creditor requirements.
McClatchy's newspapers include the Miami Herald, Sacramento Bee and Kansas City Star, which are the publications that have suffered the most during the industry and economic declines.
Advertising revenue for the second quarter stayed stable, reporting a similar 30 percent, year-to-year decline as the seen in the first three months of 2009. The company also said it had experienced an improving advertising market, similar to a statement last week by publisher Gannett Co., Inc., according to the Wall Street Journal.
The cost cuts by McClatchy included reducing its staff bass by around a third over the last 12 months, and has allowed the company to release pressure from its $2 billion debt load and creditor requirements.
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