Tuesday, July 21, 2009

Good News and Bad News From McClatchy

There was good news today for anyone holding McClatchy stock
Sacramento-based McClatchy said its second-quarter profits soared to $42.2 million from $19.7 million a year earlier. Per-share earnings rose to 50 cents from 24 cents.
The news wasn't so good for people that rely on the chain's papers for news.
The improvement came in spite of a 25.4 percent decline in revenue, including a a 30.2 percent drop in advertising sales.


[A] 29.3 percent drop in expenses returned [McClatchy] to profitability.
The chain survives, but it does so not by increasing revenue, which continues to slide, rather it does it by doing less of what it supposed to do, report the news. Don't look for any improvements in the reporting at the CDT until the revenue end picks up.

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