McClatchy Co (MNI.N: Quote, Profile, Research) posted a net loss on Wednesday because of plunging advertising sales hurting newspapers in some of its key markets, and said the ad slump will continue in the second quarter.
The newspaper publisher posted a first-quarter net loss of $849,000 or 1 cent a share, compared with a year-ago net profit of $9 million or 11 cents a share.
Revenue declined 13.8 percent to $488.3 million.
"The advertising environment continues to be weak," Chief Executive Gary Pruitt said in a statement. Second-quarter ad results should be down in the low to mid teen range, he said, somewhat better than the first quarter.
First-quarter ad revenue fell 15.3 percent to $404 million from last year.
Circulation revenue fell 5.6 percent to $67.9 million
Online advertising rose 10.6 percent in the first quarter compared with last year, Pruitt said. Excluding employment advertising, which he said has fallen nationally in print and online, Internet ad revenue grew 52.1 percent in the first quarter.
News consumers continue to move away from print media. McClatchy's purchase of Knight Ridder in 2006 hurt McClatchy's ability to diversify beynd print media.
