A Sinking Feeling: McClatchy's May Revenue Off 10%, Circ Declines to Continue

By: Newspaper publisher McClatchy Co. said Wednesday May revenue declined on weak real estate ad sales.

Total revenue slid 10.4 percent to $180.3 million from $201.3 million.

Ad sales for the month dropped 11.5 percent to $153 million versus $172.9 million in the year-ago period.

Real estate advertising revenue slumped 19.3 percent to $16.4 million from $20.3 million.

"While real estate was a significant source of revenue growth last year, the real estate boom has since turned sour and as a result our real estate advertising revenues have declined, most notably in our California and Florida newspapers," Chairman and Chief Executive Gary Pruitt said in a statement.

He also warned that ad sales will continue to dip in June, but not as much as in May.

Pruitt later told the Mid-Year Media Review in New York that he expected circulation at McClatchy papers to continue to fall through 2008.

McClatchy owns 31 daily newspapers including The Miami Herald and The Sacramento Bee.


No comments on this item Please log in to comment by clicking here