July 24--The McClatchy Co. today reported a big jump in quarterly profits, thanks mainly to the sale of one of its Internet assets. But the owner of The Sacramento Bee and other newspapers said advertising revenue declined, continuing an eight-year slump.
Sacramento-based McClatchy said net income rose to $89.9 million in the second quarter from $11.8 million a year earlier. Per-share earnings rose to $1.02 from 14 cents.
But with one-time adjustments taken out, McClatchy said profits fell to $2.8 million from $10.3 million. Revenue fell 3.2 percent to $292 million, and advertising sales fell 7 percent.
"In the second quarter we saw a slowdown in print advertising among retail clients in the quarter," said Pat Talamantes, president and chief executive, in a press release. "Still, we continued to see growth in direct marketing and digital advertising revenues and together these two sources accounted for 43 percent of our total advertising revenue in the quarter."
Like other newspaper companies, McClatchy continues to struggle with the transition to the more fragmented digital age. Still, the company noted that its digital-only revenues grew 10 percent in the quarter. Digital-only revenues include digital advertising and subscription sales.
The earnings were affected by a $145.9 million pre-tax gain from the sale of two assets: McClatchy's share of the Apartments.com website and McClatchy-Tribune Information Services. The website sale contributed the lion's share of the one-time revenue.
McClatchy also disclosed that it took a $1.7 million loss on the previously-announced sale of the Anchorage Daily News. The paper was sold for $34 million.
McClatchy shares rose 19 cents, to $5.29, in early New York Stock Exchange trading.
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