As we noted yesterday, McClatchy skipped details on internet revenues in its oifficial release but a reading of the analysts’ call transcript at SeekingAlpha.com provides some color. Turns out McClatchy’s 27.9 percent increase in advertising revenues represents $18.1 million and 7 percent of total 2Q advertising revenues compared to 5.5 percent last year. It’s folded into regional results. In his prepared remarks, Chairman and CEO Gary Pruitt told anaysts “it’s important to note that Internet operations remain the fastest area of revenue growth in the company, and we continue to expand product offerings and our leadership position online.” He also said it continues to grow in importance for the company, especially with the acquisition of Knight-Ridder.
Pruitt said KR’s percentage from internet was higher and he expects that to hold true, projecting pro forma online revenues will exceed $200 million in the first year of the “new” McClatchy. He said one strategic difference is the amount of local autonomy for site “look and feel” — a switch from KR’s top-down approach.
— McClatchy plans to grow Real Cities and is in discussions “with many players in the industry.” Efforts could move beyond an advertising network.
— He also reminded them of McClatchy’s current internet investment portfolio now that it includes KR’s holdings: one-third of CareerBuilder and one-third of Shoplocal; 25% of Topix.net; 21.5% of Classified Ventures; 31% of CityXpress, and 19% of Tribe. Gannett and Tribune have the right to buy out the CareerBuilder interest; the three companies also share ownership of Shoplocal and Topix.net. Pruitt: “The three companies have constructive discussions on going related to all of those shared Internet assets. … When we have a resolution, we will announce it publicly and I would hope that that would be in a matter of weeks, not months.”
Related: Earnings: McClatchy Beats Estimates For 2Q06 But Flat Year Over Year
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