McClatchy's 2Q profits down 83 percent

Posted by Erina Lin on July 29, 2010 at 2:56 PM

McClatchy Co. reported an 83 percent profit decline in the second quarter as the company suffered from both advertising and circulation downturn, Reuters reported.

Net income dropped to $7.3 million, or 9 cents a share, from $42.2 million, or 50 cents a share, year-over-year. Revenue fell to $342 million from $365.3 million, the Associated Press reported.

Advertising revenue dropped about 8.2 percent to $260.5 million. Circulation revenue declined 2.4 percent.

Just like many other players in the industry, the economic slowdown has drained ad revenues and pushed them to restructure to cut costs by slashing jobs. The industry has also been trying to transfer the traditional readers online. Circulation at McClatchy slipped 2.4 percent, compared to the same period last year, the Wall Street Journal reported.

According to Chief Executive Gary Pruitt in a statement, advertising revenue would be down again in the third quarter, but the drop would be less severe, Reuter reported.