GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

The McClatchy Company Reports Operating Results (10-Q)

November 01, 2012 | About:
insider

10qk

18 followers
The McClatchy Company (MNI) filed Quarterly Report for the period ended 2012-09-23.

Mcclatchy Company has a market cap of $224.6 million; its shares were traded at around $2.9 with a P/E ratio of 3.5 and P/S ratio of 0.2.

Highlight of Business Operations:

During the quarter and nine months ended September 23, 2012, retail advertising revenues decreased 7.1% to $106.4 million and 6.1% to $328.5 million, respectively, compared to the same periods in 2011. The decreases in the quarter and nine-months ended September 23, 2012 reflect lower ROP revenues in health, building and home centers, furniture and home furnishing, and lower preprint revenues, which were partially offset by an increase in digital retail advertising revenues reflecting increases in banner and display advertisements and increased revenue from our dealsaver® daily deal product. In the quarter ended September 23, 2012, compared to the same period in 2011, the decrease was primarily due to a decrease in print ROP advertising revenues of 9.6% and a decrease in preprint advertising revenues of 7.8%. These print ROP and preprint advertising revenue decreases were partially offset by an increase in digital retail advertising revenues of 0.6% for the quarter ended September 23, 2012, compared to the same period in 2011. In the nine months ended September 23, 2012, compared to the same period in 2011, the decrease was primarily due to a decrease in print ROP advertising revenues of 8.4% and a decrease in preprint advertising revenues of 8.6%. These print ROP and preprint advertising revenue decreases were partially offset by an increase in digital retail advertising revenues of 6.5% for the nine months ended September 23, 2012, compared to the same period in 2011.

National advertising revenues increased 0.1% to $17.3 million during the quarter but decreased 11.7% to $47.6 million in the nine months ended September 23, 2012, each as compared to the same periods in 2011. During the quarter ended September 23, 2012, compared to the same period in 2011, we experienced a 3.2% decrease in print national advertising, which was offset by an increase in digital national advertising of 9.9%. For the nine months ended September 31, 2012, compared to the same period in 2011, print national advertising decreased 13.1% and digital national advertising revenues decreased 7.6%. Decreases in total national advertising revenues were broad-based but led by a decrease from the telecommunications category. However, in the third quarter of 2012, the national advertising revenues in the telecommunications category decreased at a lower rate than in the two prior fiscal quarters.

During the quarter and nine months ended September 23, 2012, classified advertising revenues decreased 5.4% to $58.9 million and 7.0% to $179.3 million, respectively, compared to the same periods in 2011. Although the nations housing market is showing signs that it is beginning to strengthen, the real estate category continues to represent our largest decline in classified advertising. While the decreases in classified advertising revenues are partially a result of the weak economy and the lack of a robust housing market, advertisers are increasingly using digital advertising, which is widely available from many competitors. During the quarter ended September 23, 2012, compared to the same period in 2011, we experienced a 10.7% decrease in print classified advertising, which was partially offset by an increase in digital classified advertising of 3.0%. For the nine months ended September 23, 2012, compared to the same period in 2011, print classified advertising decreased 13.0%, but was partially offset by an increase in digital classified advertising revenues of 3.3%. The increases in digital classified advertising primarily reflect stronger automotive advertising sales as discussed below. The following is a discussion of the major classified advertising categories for the quarter and nine months ended September 23, 2012, as compared to the same periods in 2011:

· Real estate advertising revenues decreased in the quarter and nine months ended September 23, 2012 by $2.4 million, or 21.3%, and $6.7 million, or 19.5%, respectively. As discussed above, real estate has also been slow to recover from the recession and real estate advertising has been moving from print to digital media. As a result, print real estate advertising revenues declined 25.9% and 24.7% in the quarter and nine months ended September 23, 2012, respectively, while digital real estate advertising revenues were down 11.7% and 8.4% in the quarter and nine months ended September 23, 2012, respectively.

Digital advertising revenues, which are included in each of the advertising categories discussed above, constituted 22.9% and 22.5% of total advertising revenues in the quarter and nine months ended September 23, 2012, respectively. Total digital advertising includes digital advertising both bundled with print and sold on a stand-alone basis. Digital advertising revenues totaled $48.5 million and $145.1 million in the quarter and nine months ended September 23, 2012, respectively, representing increases of 2.7% and 3.4% in those respective periods, compared to the same periods in 2011. Digital-only advertising revenues totaled $26.9 million and $78.2 million in the quarter and nine months ended September 23, 2012, respectively. This represents an increase of 12.7% and 14.4% in the quarter and nine months ended September 23, 2012, respectively, compared to the same periods in 2011. Digital advertising revenues sold in conjunction with print products declined 7.5% and 7.0% in those respective periods, compared to the same periods in 2011, as a result of fewer print advertising sales.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK