The McClatchy Co. of Sacramento reported a decline in second quarter profits today amid a continued downturn in advertising revenue.
Not counting certain one-time adjustments, profit fell to $11.1 million from $16.1 million a year earlier, according to The Bee's parent. With adjustments included, bottom-line net income declined to $11.8 million from $26.9 million.
Per-share earnings dropped to 14 cents from 31 cents.
The numbers reflect the ongoing, industry-wide battle against a sluggish economy and the onslaught of competition from the Internet and other sources. But McClatchy executives saw bright spots in the latest results, including a gain in circulation revenue as the company ramped up its base of subscriptions to its websites.
While advertising revenue fell 6.7 percent, circulation revenue grew 4.8 percent. Total revenue fell 3.5 percent, to $308.8 million. Pat Talamantes, McClatchy's president and chief executive, said that compared favorably with a 3.8 percent decline in the first quarter.
He said the decline in ad revenue reflected "slower Mother's Day and Memorial Day advertising."
Digital advertising was flat during the quarter, while print ad sales fell 8.7 percent.
In a further sign of the importance of the Web, the company said digital ads represented 24.1 percent of all McClatchy advertising in the quarter, up from 22.5 percent a year ago. Talamantes said digital subscription packages, known as the Plus Program, are on track to generate "approximately $25 million in new revenues in 2013."
Digital-only revenues grew 10.6 percent in the quarter. Those are revenues not tied to the print paper, such as a business that only advertises online.
McClatchy shares fell 5 cents, to $3.01, in early New York Stock Exchange trading.
Call The Bee's Dale Kasler, (916) 321-1066. Follow him on Twitter @dakasler.