McClatchy (NYSE: MNI) reported that 1Q earnings from continuing operations dropped to $14.5 million, or 18 cents per share, compared to $21.8 million, or 46 cents per share, the previous year. In particular, the newspaper publisher experienced a loss from discontinued operations of $5.5 million, which is related to the sale of the Minneapolis Star Tribune. Overall, 1Q’s total net income fell to $9 million from $27.7 million in 1Q06. In completing the purchase of Knight Ridder last June, McClatchy issued 35 million Class A shares, which it said negatively impacted 1Q earnings. McClatchy also reported:
— The addition of the 20 Knight Ridder newspapers boosted revenues in 1Q. Revenues from continuing operations were $566.6 million, compared to revenues from continuing operations of $194.5 million the year before. Still, ad revenues decreased 5.3 percent to $477.0 million, while circulation revenues were $71.9 million, down 3.6 percent.
— Internet revenues were up 5.4 percent, related mostly to CareerBuilder. Excluding online employment advertising, other online advertising revenues grew 17.0 percent. The company expects to quickly realize additional online revenue in connection with last week’s news that McClatchy had joined the Yahoo Newspaper Consortium. Earnings release | Webcast
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