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