McClatchy reports higher digital revenue, but overall ad revenue continue to decline leading to falling income
The newspaper publisher The McClatchy Company, publisher of the Miami Herald and Sacramento Bee, reported second quarter earnings this morning, reporting that digital-only revenue had increased 10.1 percent. But ad revenue continues to fall, down 7 percent in the quarter, at $189.2 million versus $203.5 million in 2013. Operating income fell 9.5 percent as a result.
Net income increased dramatically, thanks to the sale of Apartments.com by Classified Ventures which netted the company $145.9 million as their share of the proceeds.
“We continue to make significant progress with the digital transformation of our business,” Pat Talamantes, McClatchy’s president and CEO, said. “For the quarter, we posted just over 10% growth in total digital-only revenue, which increases to nearly 14% when excluding Apartments.com-related advertising revenue from both 2014 and 2013. Our audience metrics also continue to be strong. Monthly unique visitors were up 7.7% in the quarter compared to the same quarter last year and mobile users represented 43.8% of total monthly unique visitors in the quarter.”
To put into perspective the revenue declines being experienced, while ad revenue fell relatively modestly in Q2 of 2014 in comparison to the same quarter of 2013, ad revenue is down 53.4 percent from the same quarter of 2008 when the company was able to report $403.6 million in ad revenue for Q2.