McClatchy reported a 7.7 percent decline in revenue in the second quarter as the newspaper publisher continued to be hurt by a drop in print advertising and by large retailers reducing the number of inserts in the company’s publications.
McClatchy, owner of The News & Observer, The Charlotte Observer and 27 other newspapers, had revenue of $269.4 million in the second quarter. Advertising revenue fell 12.5 percent to $165.6 million.
Digital-only advertising revenue grew 5 percent in the second quarter and digital audience revenue was up 7.1 percent.
For the quarter, the Sacramento, Calif.-based company reported net income $91.6 million, or $1.03 per share. Excluding proceeds from the company’s sale of its share of Apartments.com and its 50 percent partnership in McClatchy-Tribune Information Services, McClatchy reported net income of $2.8 million. In the second quarter of 2014, McClatchy reported net income of $89.9 million, or $1.02 per share.
McClatchy has been pursuing revenue-generating initiatives while it implements cost-saving measures to offset the ongoing decline in print advertising. CEO Pat Talamantes said in a statement that the company is on track to achieve its target of $25 million to $30 million in cost savings this year.
“We expect the savings to continue to build over the course of the year and, in light of the continued weakness in print advertising revenues, individual newspapers continue to adopt cost reduction plans to achieve their budgets,” Talamantes said.
The company’s debt was $991.2 million at the end of the second quarter, and it had $32.1 million in cash on hand.
McClatchy shares closed Friday at $1.00, down 8 cents. The stock is down 69 percent this year.