Like most newspaper publishers, the McClatchy Co. has seen brighter days. The company’s total reported revenue today shows a year-to-date loss of 5.2%, driven by a 5.5% loss in advertising revenue. The company’s share price dropped sharply. But there is a candle burning.
McClatchy’s online ad revenue has been increasing 7.6%. McClatchy CFO Pat Talamantes attributed the success to an affiliate deal with CareerBuilder.com for employment advertising. “This agreement is helping to grow online employment revenues at the legacy McClatchy newspapers,” he said in a statement, “however, under the new affiliate agreement selected products are no longer available to be sold by the 20 acquired Knight Ridder newspapers, which is depressing their internet revenues.”
McClatchy completed the purchase of rival publisher Knight Ridder last year, which led to an overall loss in revenue. McClatchy sold off the Minneapolis Star Tribune and at least twelve other Knight Ridder papers to recoup.
CareerBuilder is owned jointly by McClatchy along with publishers Gannett and the Tribune Company and serves employment classifieds.