McClatchy reports higher fourth-quarter profits

Staff reportFebruary 14, 2014 

The McClatchy Co. reported a slight increase in fourth-quarter profits Thursday while print advertising continued to decline.

Sacramento-based McClatchy, which owns The Telegraph and 29 other daily newspapers, said quarterly earnings rose to $29.9 million compared with $29.8 million a year earlier, excluding certain adjustments, according to a news release. Bottom-line net income, including those adjustments, was $12.5 million, or 14 cents a share. That compared with a loss of $30 million, or 35 cents a share, a year earlier.

McClatchy’s numbers were skewed by a variety of factors, including an extra week in the fourth quarter of 2012.

On a comparable basis, with the additional week removed, McClatchy’s revenues fell 2.1 percent in the fourth quarter. Advertising revenue fell 6 percent, while circulation revenue grew 9.1 percent, according to the release.

McClatchy’s digital and direct-marketing revenues each grew 2.2 percent during the quarter. The company said its Plus Program, which offers unlimited access to its digital sites for a fee, generated $8.8 million in new revenue in the quarter and $31.4 million for the entire year.

McClatchy’s total earnings for 2013 was $47.3 million, down from $52.4 million in 2012, excluding adjustments. Net income with the adjustments included came to $18.8 million, or 22 cents a share, compared to a loss in 2012 of $100,000. Revenue for the year totaled $1.24 billion. On a comparable basis, excluding the extra week in 2012, revenue fell 3.4 percent, with ad revenue falling 6.7 percent.

McClatchy shares closed at $4.80 Friday, up 16 cents, on the New York Stock Exchange.

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