McClatchy Co.'s stock sagged Wednesday after the newspaper publisher reported its April revenue fell on continued classified advertising declines.McClatchy shares closed at $8.69, down 7.5% on the day.
The company, whose properties include The Miami Herald, The Sacramento Bee and The Charlotte Observer, said classified ad sales plunged 27.6 percent for the month on sharp drop-offs in real estate and employment categories.
The newspaper industry has struggled as consumers and advertisers continue to migrate to the Internet. Companies have tried to combat the issue by cutting costs and ramping up Web operations.
John Janedis of Wachovia Capital Markets LLC said the company's 14.8 percent revenue decline in April was below his estimate for a 13.8 percent slump.
"We do not see any signs of improvement in McClatchy's core California and Florida markets, or the overall real estate and help wanted categories weighing on ad revenues," the analyst wrote in a client note.
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Hat tip: Herald Watch
