For the fourth consecutive period, The McClatchy Company (NYSE: MNI) has been able to maintain profitability on an adjusted basis, as revenue declines remained fairly high, though the situation continued to improve. As for online, the revenue picture was largely the same. Most online categories, including national ads, auto, classifieds, employment were down in the low single digits; real estate. Because of McClatchy’s heavy presence in the troubled California and Florida housing markets, saw real estate ads fall 15.7 percent. On the plus side, online retail and a category designated as “other,” were up 9.4- and 15.7 percent respectively.
Like most other newspaper companies that have reported profits the past few quarters, such as Gannett (NYSE: GCI), the NYTCo (NYSE: NYT), and Lee Enterprises (NYSE: LEE), cutting costs has been the main solution. But companies will have difficulty maintaining that stance over the long-term.
One other problem looming over most newspaper companies has been debt. McClatchy appears to making progress there too. Total debt at the end of Q1 was $1.905 billion, down more than $43 million from the end of last year.