Initial reaction: ad revenue is still hemorrhaging. Third quarter total ad revenue for the company was $266.1 million, compared to $370.1 million a year ago. That is a staggering drop of 28.1%. Total revenue fell 23.1 percent to $347 million.
The company managed to turn a profit, thanks to cost-cutting and a tax adjustment.
I'm taking a closer look at the numbers; I'll be posting more today.
Update: a reader offers perspective:
The key thing to remember: Ad revenues were down 28 percent COMPARED TO 2008 - which was just plain awful. You can't spin that disaster with anything positive, although Pruitt did allude to a slight bump in online ad revenue, which is a pimple on an elephant in the ad revenue mix. More job cuts have to be in the company's plan before the end of the year.
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14 comments:
The key thing to remember: Ad revenues were down 28 percent COMPARED TO 2008 - which was just plain awful. You can't spin that disaster with anything positive, although Pruitt did allude to a slight bump in online ad revenue, which is a pimple on an elephant in the ad revenue mix. More job cuts have to be in the company's plan before the end of the year.
...and the bleed continues, no matter the spin.
McClatchy stock is reacting to the 'good news' - it's taken a 10 percent dump in early trading!
In order to stop the bleeding the company is going to be forced to cut more costs. Since it can't sell land in the depressed real estate market, it will layoff employees. There's no other place to cut. How very sad.
Can McClatcy sell out to Murdoch?
With brother Murdoch and Liberty Media running things, at least the business may have a chance.
That's a great way to cut staff positions - sell to Murdoch. The far left McClatchy reporting staffs would quit by the scores. Hell of an idea!
Company stock price dropping like a sack of rocks. This report not good for those trying to make a buck.
Get ready for the fill-in-the-blank corporate e-mail from your local hatchet man, I mean "publisher."
"These are challenging times, and it's never easy to say goodbye to longtime friends."
Anon 7:10 I like the existing strategy already in play.
Why buy a plagued and infested herd of lemming newspapers when you can buy it on the cheap tomorrow?
Recall Rupert bought the WSJ, the only newspaper that is thriving in this...Melanie Sill economy?
At McClatchy, the Marxist libs are successfully culling themselves.
The Times can’t sell the Boston Globe (100 million a year loss), and Carlos Slim is bleeding them almost as much as the Globe is.
At best Rupert is also using McClatchy’s and Pinch’s strategy, but the kicker is he is also a real and proven businessman.
Wait to deal with the toxic, as they have so much further to fall.
Wait for the plagued and infested lemmings to eat themselves, weaken and go bust.
Then and only then, stick the long, hard Atropine filled syringe of cash into their dark and ungrateful liberal heart to give them life!
Last I heard the only serious bidder wanting to take over McClatchy was a Bangladeshi street urchin willing to trade his least tattered shirt and one worn out sandal.
But the Wall Street gurus are saying the recession is over.
Company stock price dropping like a sack of rocks. This report not good for those trying to make a buck.
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Actually it isn't bad for some. Short Interest is up about 3 million shares over the past couple of months.
...still, we have Gary The Magnificent and his dopey band of Corporate executives to lead us to the promised land. Hang in there Gary, the internet will be a thing of the past real soon and everyone will be buying newspapers again including the all important 18-34 group that advertisers want.
Anon 8:13 LMAO
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