The McClatchy Co. today reported lower profits and revenue in the second quarter, as The Bee's owner continues to struggle with a weak economy and structural changes in the newspaper industry.
The Sacramento newspaper chain said second-quarter profits fell to $4.9 million, or 6 cents a share. That compared with year-ago profits of $7.3 million, or 9 cents a share.
McClatchy said advertising revenue fell 9.4 percent from a year earlier. Total revenue, including circulation, was down 8.1 percent, to $314.3 million.
"It is clear that the weak economic recovery is having an impact in the markets we serve," said Chairman and Chief Executive Gary Pruitt in a press release.
He added that "advertising revenue trends so far in July are in the same range as the second quarter."
McClatchy's quarterly results beat Wall Street analysts' expectations by a penny a share, according to Thomson Reuters. And the slippage in ad revenue represented an improvement over the first quarter, when sales fell 11 percent.
McClatchy is caught up in an industry-wide downturn, caused by economic factors and a proliferation of competitors for advertising dollars. Last week, Gannett Co., the nation's largest newspaper chain, reported a 4.9 percent decline in revenue from its newspapers. The New York Times Co.'s second-quarter revenue fell 2.2 percent.
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