Thursday, October 15, 2009

Remember when Gary Pruitt predicted McClatchy would make $200 million in online revenue this year?... odds of that happening are fading fast

Last April Gary Pruitt brashly predicted McClatchy would earn $200 million in digital revenue in 2009. His quote:

"... At McClatchy, 15% of our advertising revenue today comes from online. McClatchy, a company founded before the advent of electric lights, will generate nearly $200 million dollars in digital revenue this year at a higher profit margin than our print business.

"What significance is this? Fifteen percent is above the average newspaper publisher’s take from digital. $200 million would be almost enough to run The New York Times’s newsroom operations for a year. Not bad."

Results posted today by McClatchy show it is highly unlikely company will reach $200 million in online revenue this year.

The earnings report shows the company made $46.7 million online in the 3rd quarter, and $139 million online total through the first three quarters.  Which means McClatchy will have to earn $61 million online in the remaining quarter. I don't see it happening without a miraculous Christmas season, or else a nifty accounting trick.



Anonymous said...

he also promised that the internet was going away this year... last time I believe anything he says from now on

Anonymous said...

I know, I know!

McClatchy can have another, but this time an exclusive on-line only, “Dear Leader Trinket Sale” making up for their 141 million short fall over night!

Anonymous said...

Fact is, it ain't gonna happen Gary. Gotta make up the shortfall somewhere else. Oh, let's blow out more of these hapless drones on the payroll.

Anonymous said...

The only reason McClatchy has a "growing" presence on the Web is because of the content produced by the staff needed to fill a product that's still supported from print revenues (not to mention AP stories produced by other newspapers and TV stations).

Print revenues decline, staff gets cut and there's even less to read online. Online revenues will never cover the cost of maintaining a true cover-all-your-bases news organization. Eventually, newspapers will have a staff of 15 covering breaking news, sports, crime and the occasional scandal, probably in partnership with an area TV station.

Advertisers will wise up eventually to the fact people don't look at their ads online. So far, advertisers have just bought into newspapers' argument that they have to advertise online because "we have the biggest audience." Sorry, readers just want a free paper. Period. For-pay models won't work. So newspapers are screwed.

Anonymous said...

Did you really believe that??? LOL

Anonymous said...

9:04 AM

Don't lose hope now, my people in Corporate are working very hard to make it another bad, er I mean good year. We have a massive list of things we are going to get rid of to make another profit.

Gary "The One" Prushit