McClatchy expects 4Q ad sales down more than 20 percent, but better than recent quarters
By APTuesday, December 8, 2009
McClatchy says advertising climate improving
SACRAMENTO, Calif. — Shares of The McClatchy Co., the nation’s third-largest newspaper publisher, rose Tuesday after the company said advertising trends have improved.
McClatchy expects ad revenue to decline in the low- to mid-20 percent range in the fourth quarter compared with a decline of 28.1 percent in the third quarter and 30.2 percent in the second quarter.
McClatchy also expects to report an increase in operating cash flow in the fourth quarter from last year as it cuts costs in the high-20 percent range in the fourth quarter. For 2010, operating cash flow should stay steady or grow, the company said.
Shares were up 46 cents, or nearly 18 percent, to $3.07 in late-morning trading.
The publisher said a proposed $190 million sale of The Miami Herald’s 10-acre parking lot remains uncertain. The sale is contractually required to be completed by year’s end.
If the deal doesn’t close, McClatchy can collect a $6 million termination fee and keep a deposit of $10 million.
McClatchy, based in Sacramento, Calif., inherited the deal when it bought Knight Ridder Inc. in 2006. But the buyer, Citisquare Group LLC, has had trouble raising financing as the Miami real estate market collapsed.
