McClatchy's 3rd Quarter Earnings Drop 21 Percent

SACRAMENTO (AP) -- Newspaper publisher McClatchy, owner of the Sacramento Bee, says its third-quarter net income fell 21 percent, hurt by lower advertising and circulation revenue in an economic downturn that has exacerbated an industry slump.

McClatchy Co. said Friday that it earned $9.4 million, or 11 cents per share, for the July-September period. That's down from $11.9 million, or 14 cents per share, a year earlier. Revenue fell 8 percent to $300 million.

McClatchy says its advertising revenue fell 10 percent.

McClatchy has suffered more than some of its peers because two of its largest newspapers, The Miami Herald and the Bee, are in markets that have been especially hit hard by a downturn in real estate. This, along with weak auto sales, has hurt advertising.

Circulation revenue fell 3 percent.

Digital advertising revenue fell slightly -- less than half of a percent -- but that's because the company bundles some digital ads with print ads. Standalone digital revenue increased 9 percent. Digital advertising now represents 21 percent of McClatchy's total advertising revenue, up from 19 percent in the third quarter of 2010.

Shares of McClatchy, which is based in Sacramento, rose 9 cents, or 5.8 percent, to $1.64 in midday trading Friday. The stock has lost nearly two-thirds of its value since the start of the year.

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