Embattled Knight Ridder Reports Nice Ad Gain for October

By: E&P Staff Knight Ridder reported today that total advertising revenue for October was up 3.4% compared with the same period last year. Retail was up 1%. National was down 0.4%. Classified was up 8.2%.

Within the classified category, help wanted was up 21.9%, real estate was up 19.2%, and auto declined 14.3%.

The three newspapers acquired at the end of August -- The (Boise) Idaho Statesman, The Olympian and The Bellingham Herald (both in Washington) -- are included in the October 2005 numbers but not in the October 2004 results. Former KR papers in Detroit and Tallahassee have been excluded from all periods.

"The October revenue results mirror what newspapers across the country have been seeing for several months," said Tony Ridder, Knight Ridder chairman and CEO, in a statement. "In addition, Hurricane Wilma in Florida was responsible for a loss of approximately $2.1 million in revenue -- or 1% of our total.

"Anticipating that current ad patterns could persist through the remainder of the quarter, we believe that our cost controls will allow us to deliver earnings per share from continuing operations in line with the current consensus estimate of $1.23. In meeting that number, we are excluding severance for Philadelphia and San Jose, also the gain from the sale of land in Seattle."

Total ad revenue was up 8.5% at the chain's paper in San Jose, Calif., 7% in St. Paul, Minn., 4.8% in Contra Costa, Calif., 2.8% in Columbia, S.C., and 1.1% in Fort Worth, Texas. Philadelphia, Miami, and Kansas City were soft.

Retail was up 8.2% in San Jose, 7.1% in St. Paul, 2.7% in Fort Worth, and 1.8% in Charlotte, N.C. The other large markets were down.

National was up 22.8% in St. Paul, 13.2% in Fort Wayne, Ind., 12.2% in San Jose, and 6.2% in Contra Costa. The other large markets were soft.

Classified was up 15.4% in Contra Costa, 12.8% in Columbia, 7.1% in San Jose, 3.8% in Philadelphia, 0.8% in Miami, 0.7% in Charlotte, and 0.4% in Fort Worth and St. Paul. Kansas City was flat.

Circulation revenue was up 1.8% for the month, but would have been down 1.7% if the three acquired newspapers were included in both periods.

Total operating revenue was up 3.2% for the month and up 2% for the year.