McClatchy slides into the red in Q3 as ad revenue falls 8.6%
The publisher of the Sacramento Bee, Miami Herald and other newspapers, The McClatchy Company, reported falling ad revenue that drove the company into the red in the third quarter. McClatchy said ad revenue fell 8.6 percent, though digital-only advertising grew 5.4 percent in the quarter.
Net income came in at a loss of $2.8 million in the quarter.
For the year, McClatchy is showing a big gain in income due to its sale of Classified Ventures (CV), which gave the company a cash inclusion of $631.8 million.
“Selling CV was a significant transaction for our company and our shareholders,” Pat Talamantes, McClatchy’s president and CEO, said. “We received a great price that reflects the strength of the Cars.com franchise while maintaining a five-year affiliate agreement with Cars.com that gives us the right to sell Cars.com products and services to our customers. The sale of our interest in CV helps provide us the liquidity to execute on our continuing digital transformation and cash for other corporate purposes, including reducing our debt over time.”
Interest expense to service its debt cost the company $33.126 million in Q3.