McClatchy reported Thursday that revenue fell 3.2 percent in the second quarter, despite selling off major assets and recording double-digit growth in its digital business.
McClatchy, owner of The News & Observer, The Charlotte Observer and 27 other daily newspapers, reported net income of $89.9 million, or $1.02 per share, compared to $11.8 million, or 14 cents per share, during the second quarter of 2013.
"In the second quarter we saw a slowdown in print advertising among retail clients," CEO Pat Talamantes said in a statement. "Still, we continued to see growth in direct marketing and digital advertising revenues."
McClatchy has been working to offset losses in print advertising by accelerating its digital transition. The company posted gains in its online business this quarter.
While total advertising revenues in the second quarter were down 7 percent, digital-only revenue from advertising and online subscriptions grew 10 percent.
Circulation revenues were down 3.1 percent for the quarter. Monthly visitors increased almost 8 percent this quarter with mobile users making up 43.8 percent.
The company received cash from the sale of its equity in Apartments.com, the McClatchy-Tribune Partnership, and from the sale of the Alaskan paper the Anchorage Daily News. The transactions boosted the company's cash balance to $265.3 million, which it is using to reduce debt and invest in its digital business, Talamantes said.
McClatchy's debt at the end of the quarter was $1.556 billion, flat from the previous quarter.
McClatchy shares were up 2.17 percent to $5.21 in mid-morning trading Thursday.