Thanks in part to ramping up its digital operations, McClatchy Company announced today its net income in the fourth quarter of 2011 reached US$42 million (49 cents per share), compared with $15.7 million (17 cents) in the same quarter in 2010.
Revenue dropped 5 percent to $351 million, from $370 million.
Online investments like Classified Ventures, of which McClatchy owns a 25.6 percent stake, saw growth, bringing in a dividend of $17.4 million in December. Classified Ventures owns auto website Cars.com, rental site Apartments.com and jobs site CareerBuilder.com.
“These equity investments also contributed $27.8 million in earnings in 2011, more than double the 2010 earnings of $11.8 million. We are especially pleased with the performance of our internet investments. These companies provide important products to our newspaper websites and are strategic partners in our digital success,” Gary Pruitt, chairman and chief executive officer, said in a statement.
The U.S. newspaper chain beat analysts' estimates of 42 cents per share, Boston.com noted.
However, the company continues to face falling print advertising revenues – an issue all print media face, paidContent pointed out. Although circulation has stablised and finances are improving at its newspapers, such as the Miami Herald and El Nuevo Herald, digital growth for newspapers is also slow.
Revenue dropped 5 percent to $351 million, from $370 million.
Online investments like Classified Ventures, of which McClatchy owns a 25.6 percent stake, saw growth, bringing in a dividend of $17.4 million in December. Classified Ventures owns auto website Cars.com, rental site Apartments.com and jobs site CareerBuilder.com.
“These equity investments also contributed $27.8 million in earnings in 2011, more than double the 2010 earnings of $11.8 million. We are especially pleased with the performance of our internet investments. These companies provide important products to our newspaper websites and are strategic partners in our digital success,” Gary Pruitt, chairman and chief executive officer, said in a statement.
The U.S. newspaper chain beat analysts' estimates of 42 cents per share, Boston.com noted.
However, the company continues to face falling print advertising revenues – an issue all print media face, paidContent pointed out. Although circulation has stablised and finances are improving at its newspapers, such as the Miami Herald and El Nuevo Herald, digital growth for newspapers is also slow.
I guess it won't be long until we start seeing noticeable decline in print media products. The internet and the discouragement of cutting trees may have been the major causes for this.
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