McClatchy Numbers Cave

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Large newspaper chain McClatchy (MNI), which doubled down on the industry by purchasing Knight-Ridder, had a disaster of an August. The company reported that consolidated advertising revenues in August 2007 decreased 9.2% and total revenues were down 8.4%

Classified revenue at the group fell 17% and revenue in the company’s California newspapers was off over 16%.  Even online ad revenue fell 3% to under $14 million.

At some point one of these newspaper companies is not going to have enough operating income to cover debt service.

Douglas A. McIntyre