McClatchy reports third-quarter loss – Sacramento Bee
Sacramento-based newspaper publisher McClatchy on Monday reported a net loss of $238.9 million in this year’s third quarter, with $230.9 of that total related to after-tax, non-cash charges.
McClatchy, publisher of The Sacramento Bee and 29 other newspapers, said the non-cash charges relate to a non-cash deferred tax valuation allowance and non-cash impairments on newspaper mastheads and certain equity investments.
McClatchy reported a loss of$9.8 million in the same quarter of 2016.
The company reported an adjusted net loss of $5.9 million in the most recent quarter, excluding severance, impairments, the tax-valuation allowance and other items in the third quarter ended Sept. 30.
McClatchy reported an adjusted net loss of $2.1 million in the same quarter a year ago.
Third-quarter revenue totaled $212.6 million, down 9.4 percent from a year ago.
The company estimated that in September, revenue from its East Coast operations were reduced by approximately $625,000 as a result of Hurricane Irma.
Advertising revenue was $115.3 million, down 13.4 percent compared with the third quarter of 2016.
Digital-only advertising revenue grew 8.2 percent in this year’s third quarter.
“We reported record audiences in the third quarter of 2017, reaching 89 million unique visitors in the month of September,” Craig Forman, McClatchy’s president and CEO, said in a statement accompanying Monday’s news release on quarterly earnings. “Our progress in newsroom reinvention, technology improvements and our reporting on Hurricane Irma boosted our audience growth.”
Like other newspaper publishers, McClatchy has sustained a prolonged decline in print advertising revenue even as it puts more resources into digital products to capture a greater audience of online readers and advertisers.