The McClatchy Company (MNI), like other newspaper publishers, continued to reap the benefits of its investment in online business during the third quarter. The owner of the Sacramento Bee and Miami Herald said online advertising sales rose 16 percent in the quarter to $47.1 million from $40.5 million in 3Q05. For September, online ad revenue hit $15.4 million, up 20 percent from $12.8 million over the same month last year. The online revenues helped the bottom line which was affected by costs associated with its purchase of the Knight-Ridder chain. Net income overall was $51.8 million, or 64 cents per share, compared with $38.6 million, or 82 cents. Sales jumped to $680.9 million, helped by the inclusion of the new Knight-Ridder papers.
— Among issues that affected 3Q06: KR sold part of its interest in CareerBuilder.com for $310 million, using the proceeds to pay down the KR debt. McClatchy retains a 15 percent stake.
— On the print side, classified and national showed “worsening trends.” CEO Gray Pruitt said in the release: “Online and direct marketing revenues continued to show strength and their growth helped offset some of the weakness in classified and national advertising.” He said he expects that also to be the case in the fourth quarter, with its signs of a slowdown.
Reuters: During his conference call with analysts and investors, Pruitt said he has no interest in either buying the troubled Tribune Co. or in going private as some analysts have suggested.
Update: From the conference call via SeekingAlpha transcript:
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