Wednesday, August 20, 2008

Uh oh: McClatchy's July revenue falls -- ad revenue down 19%, classifieds down 29%

McClatchy reported today that July revenues fell 16 percent over the previous year. AP:

Newspaper publisher McClatchy Co. said Wednesday revenue dropped 16.4 percent in July, hurt by continued classified advertising declines.

Total revenue fell to $167.8 million from $200.7 million in the prior-year period. Ad revenue for the month slid 19.3 percent to $136.8 million compared with a year ago.

National ad sales slipped 20.2 percent, but the biggest drop-off came from classifieds, which tumbled 29.5 percent. The softest classified ad categories included real estate and employment.

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.

For the year to date, revenue declined 15 percent while ad sales fell 16.5 percent. Online ad revenue climbed 11.7 percent for the seven-month period.

McClatchy's rotten summer

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