November was no month for thanksgiving at The McClatchy Co., with The Miami Herald parent reporting Monday that total revenue for the month dropped 19.4% compared to a year ago on advertising revenue that plunged 22.4%.
Ad results were ugly across the board. McClatchy said its retail ad revenue fell 17.6%, national was down 33.2%, direct marketing was off 16.8%, and its "other" category was declined 23.5%.
By far the worst performance, however, was again in classified advertising.
Overall classified fell 41.1% on huge declines in the big three categories of automotive (down 42.9%); real estate (down 45.8%); and employment (down 58.6%).
The one bright spot was online ad revenue, which recorded a 7.5% gain over November 2007. For the first 11 months of 2008, online ad revenue is up 10.6%.
"November advertising revenues were lower than October, but in line with recent ad trends," McClatchy CFO Pat Talamantes said in a statement. "The economic downturn continues to hurt consumer confidence and as a result negatively impacts advertisers in the local markets we serve."
Chart here. The revenue collapse is accelerating unbelievably fast -- October revenues at McClatchy were down 17.8 percent over the previous year, so the November numbers are really bad.
BONUS OBSERVATION: Howard Weaver's psychic prediction last June about advertising revenue hasn't exactly panned out.
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21 comments:
HO, HO, HO, MERRY CHRISTMAS from McClatchy. How many layoffs in January? I bet no more buyouts.
It's called FREEFALL! If you can't make it in November or December YOU CAN"T MAKE IT.
Um, great. And after that, then what?
October and November should have seen higher revenue over 2007 due to the election (political ads, more papers purchased, more eyeballs at the web sites). So the numbers are really bad. I agree with 8:23 -- look for deep cuts soon.
Just think. We now start a new year comparing monthly losses to this year. If they are only down between 10 and 15% will McClatchy have the nerve to declare it an improvement?
Their online numbers are going to go down now that their not allowing anonymous comments. What a smart move.
Most of the top newsroom talent already have bailed for new careers or early retirements. Those who will survive the next round of staff cuts will be the true victims.
I think the main reasoning for not allowing anonymous comments, is that the comments are spot-on negative “Truth to Power,” meaning the comments are the ‘Truth” and the ‘Power’ is now the hapless McClatchy company. How does it look that everyone has bad things to say? McCrusty had to curtail those little pieces of honesty from readers.
"The economic downturn continues to hurt consumer confidence and as a result negatively impacts advertisers in the local markets we serve."
Notice the bit about consumer confidence? After these Obamabots spent months doing everything they could to destroy that confidence in order to hurt Bush, they are the victims of their own self fulfilling prophesy. I love it!
Does anybody know whether they make much online? It seems the print newpaper is where all the ads are. They keep talking about online offsetting print. I don't see how the revenues can come close.
Their online revenue is 11% of 126 million dollars for the quarter. In other words, they don't make jack compared to what their print brings in and there is no way to replace it.
By way of contrast, the WSJ brings in 100 million just in subscription revenue. How's that for highlighting the difference between a news organization and a propaganda chain? Objective, Ethical Journalism makes money. McClatchy doesn't.
Advertising contracts will be weaker in 2009. Large advertisers ( that haven't collapsed - yet ) will be sharp and negotiate contracts that compel give-away rates.
Free 4 color positions won't help with a shrinking page count.
I saw a TV ad by JC Penney that asked shoppers to go online and copy a coupon for $15 off their store purchase.
Why couldn’t every business lure shoppers to their web page for sale information and coupons, and drop paid ads altogether?
Stores could double the coupons days and still save money. I think customers would much rather have that $15 coupon more often, than pay a dinosaur newspaper to belch out biased trash.
Free 4 color ads won't go. The KC Star tried doing a lot of color with their new press pavilion. Bottomline WAY to costly and put a stop on it.
MAN I CAN'T WAIT UNTIL ALL THESE PEOPLE LOSE THEIR JOBS! WAY TO GO MCCLATCHY WATCH DUDE, FOR HAVING SUCH A GREAT ATTITUDE ABOUT THE FAILURE OF A BUSINESS AND AN INDUSTRY THAT WILL PUT THOUSANDS OF PEOPLE OUT OF A JOB ALL BECAUSE OF SOME RIDICULOUS POLITICAL GRUDGE YOU HAVE AGAINST NEWSPAPERS! YOU TRULY ARE A STAND UP DUDE.
I do believe that is the lamest defense of McClatchy I have ever heard. How leftist of you.
BUT I'M SO HAPPY THAT ALL THESE PEOPLE WILL LOSE THEIR JOBS! IT WILL TOTALLY JUSTIFY MY PETULANT LITTLE BOY ATTITUDE!
I AM AWESOME!
The failure of McClatchy had been brewing for decades. A Monopoly based on information media control, that put it's head in the sand when the information age exploded.
McClatchy still 'thinks' it is a newspaper company, as as long as there is a only one newspaper in town, there's no worry about competition.
One day, the boys on the third floor may realize they are dead last as an information company.
1:06 They have all ready put thousands out of work. It's not all newspapers "DUDE" just one like McClathcy.
Anon: 1:06 PMS
Shooting the messenger will not help you. McClatchy is full of holes already, but aim your cheap shots at them. However, shooting at a dead corpse seems a bit gruesome.
McClatchy is in a freefall, but Howard Weaver has a golden parachute!
Have you thought of a new name for McClatchy Watch after McClatchy chains it's doors?
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