McClatchy profit drops on slow advertising sales
Advertising revenue at The McClatchy Co. (owners of the SacramentoBee) dropped almost ten percent in the second quarter of 2007 compared to the previous year, led by a 19 percent decline in real estate advertising.
Ad revenue dropped 15 percent in California and 21 percent in Florida.
The company also said it would pay down debt by as much as $700 million over the next 18 months through cash flow and sale of assets. McClatchy’s stock has been heavily pounded by investors, caught between an industry-wide revenue slump and a high debt load from last year’s acquisition of Knight-Ridder Inc.
Total revenue for McClatchy declined 8.3 percent to $580,000,000 in the second quarter of 2007 from $632,000,000 in the previous years’ quarter.