McClatchy expected to post second-quarter loss (Dinosaur Media DeathWatch™)

Chicago Tribune ^ | July 20, 2009 | Staff

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Newspaper publisher McClatchy Co. is scheduled to report its second-quarter results before the stock market opens Tuesday. The following is a summary of key developments and analyst opinion related to the period.

OVERVIEW: Hardly anything has gone right during the past few years for the owner of The Miami Herald and 29 other daily newspapers. The hard-luck theme is unlikely to change in the Sacramento-based company's second-quarter earnings report.

With the newspaper advertising market in ruins, another loss seems certain.

As the losses mount, the chances of a bankruptcy filing rises. That's because McClatchy is saddled with $2 billion in outstanding debt with a steadily shrinking cash flow to cover its future obligations and adhere to the financial requirements — known as covenants — set by its secured lenders.

Several other major newspaper publishers, including the owners of the Los Angeles Times, Chicago Tribune and Philadelphia Inquirer, have filed for bankruptcy protection in the past eight months. Many analysts think McClatchy is now headed down the same path, although the publisher's management hasn't discussed the possibility publicly.

McClatchy hoped to whittle about $900 million from its debt in a complex exchange, but only 9 percent of the bondholders accepted the offer.

Most of the debt stems from McClatchy's 2006 acquisition of Knight Ridder, which was completed during the early stages of an advertising slump that has grown progressively worse.

McClatchy's ad revenue plunged 30 percent in the first quarter after falling 18 percent for all of 2008. The second quarter is expected to include another share drop, based on the 32 percent decline in print advertising suffered by Gannett Co., the largest U.S. newspaper publisher.

snip

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Monday morning good news.

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ping

[Tarpon]

I doubt that even the State Run Media publishing only truth will redeem the slide.

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http://www.broadcastingcable.com/article/315675-Cover_Story_Network_News_One_Click_Away.php
Cover Story: Network News — One Click Away
Webcasts and online shows provide broadcasters with the same type of outlet as a cable news network. They just need viewers—and advertisers—to tune in.

http://www.johntemple.net/2009/07/how-good-are-newspaper-web-sites-test.html
How good are newspaper Web sites? A test of Eppy winner Azstarnet.com shows even the “best” may get a failing grade

http://www.marketwatch.com/story/cable-tv-may-face-more-than-seasonal-dip-this-year?siteid=nbih
More than seasonal weakness for cable?
Housing, economic turmoil cut into market options, analyst says

[sr4402]

McClatchy's ad revenue plunged 30 percent in the first quarter after falling 18 percent for all of 2008

Yes, the truth will out. Many advertisers are fleeing the MSM having figured out it only bites the hand that feeds them. Advertising is the MSMs life blood and without it, the MSM is being put on life support by wealthy Libs/Progressives.

The only trouble with this is that it comes out in their reporting and only drives more readers/viewers away.

[La Lydia]

I guess McClatchy’s strategy of hiring exclusively from the pool of laid-off, left-wing, burned-out rejects from other dying newspaper chains and letting them write the same kind of biased BS for the McClatchy wire isn’t working out so well.

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http://www.usatoday.com/money/media/2009-07-19-globe-vote_N.htm
‘Boston Globe’ union to vote again on new contract

http://www.time.com/time/business/article/0,8599,1911239,00.html
Business Journalism: A Vanishing Necessity?

http://www.broadcastingcable.com/article/315759-ESPN_Goes_Local.php
ESPN Goes Local
Expands network of local sports websites to include New York, Los Angeles, Dallas

http://www.broadcastingcable.com/article/315753-MMTC_Pushes_Help_For_Minority_Broadband_Bidders.php
MMTC Pushes Help For Minority Broadband Bidders
Wants NTIA and RUS to agree to development of small and minority businesses

http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_content_id=1003995312
‘Boston Globe’ Union to Vote Again Today on Contract

http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_content_id=1003995331
Free-Paper Publisher Metro Swings to Q2 Loss — Unprofitable Papers to be Cut?

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http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aumtC_QBYovo
Malone Says ‘It May Be Too Late’ for Media Companies

http://online.barrons.com/article/SB124786946519160351.html?mod=googlenews_barrons
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http://www.thedeal.com/dealscape/2009/07/bankruptcy_advisor_says_politi.php
Political ads are key to broadcasters’ recovery

http://www.nypost.com/seven/07182009/business/slumping_nbc_pulls_ad_slots_179840.htm
SLUMPING NBC PULLS AD SLOTS

http://www.wired.co.uk/wired-magazine/archive/2009/08/start/can-murdoch-save-online-news.aspx
Can Rupert Murdoch save online news?

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aY8nHNa_hIKo
McGraw-Hill May Need to Look to Media Unit for Cuts

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http://www.medialifemagazine.com/artman2/publish/Overnights_50/Another_bummer_summer_Sunday_night.asp
Another bummer summer Sunday night

http://www.wtop.com/?nid=104&sid=1720904
Webcasts open up newsrooms, but to small audiences

http://www.boston.com/business/articles/2009/07/20/globe_union_votes_on_second_contract_offer_today/
Globe union votes today on second contract offer

http://www.boston.com/business/articles/2009/07/18/bay_state_banner_to_accept_bostons_loan_offer/
Banner to accept city’s loan offer

http://cancelthebee.blogspot.com/
Analysts project McClatchy will report big loss tomorrow... 2nd quarter revenue could be $121 million less than a year ago

http://jammiewearingfool.blogspot.com/2009/07/hey-guess-what-slobbering-over-obama.html
Hey, Guess What Slobbering Over Obama Gets You? Lower Ratings, That’s What

http://recoveringjournalist.typepad.com/recovering_journalist/
Murdoch’s Journal

http://www.wausaudailyherald.com/article/20090720/WDH06/907200315
Column: Newspaper’s effort goes beyond survival

http://www.wausaudailyherald.com/article/20090720/CWS03/307200029/-1/WDH03/Paper-to-give-away-ad-space
Paper to give away ad space

[engrpat]

How can this be. Just a month or so our local McClathcy paper, Star-Telegram (DFW) said that they were in great shape and making money. Guess that is why most of the time it isn’t any larger than a penny saver and now they are raising their rates. They think just like all democrats, charge more, give less and call it progress.

[Judges Gone Wild]

I stopped getting the Sacramento Bee when they supported Al Gore’s attempted coup in 2000. That’s what I tell them whenever they call. Some kid came to my door offering me a free copy. I told him, “No thanks. I don’t need left wing propaganda.” He said, “I hear what you’re saying.” So apparently a lot of people are saying the same, and this in a town where GOVT is the largest employer!

[Zakeet]

NBC is deferring sales during times of plunging prices in order to obtain more revenues sometime in the future. The idiots are beyond desperate, moving rapidly into frantic.

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Look at those last two links about Gannett's Wausau paper. They are actually giving away advertising!!!

[Zakeet]

Look at those last two links about Gannett's Wausau paper. They are actually giving away advertising!!!

Amazing!

They are showing they will do anything to try to demonstrate they're still in business.

This is probably worse than the situation in Detroit a few weeks ago when the Newsrags gave away free copies in order to boost readership -- and few people took them up on their offer.

[Buckeye McFrog]

he no longer has that kick to the P&L from sucking profits out of the Pittsburgh Pirates while running them at absolute minimum payroll...

[Joe Boucher]

Similar to N.P.R. McClatchy newspaper are little more than propaganda mills for the dems.
Let them both die.

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http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_content_id=1003995451
Cox Sells North Carolina Newspapers

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http://www.beatthepress.org/blog/ralph-ranalli/402
Why the Boston Globe’s Newspaper Guild workers may just vote no again

http://www.chicagobusiness.com/cgi-bin/news.pl?id=34798
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http://www.mediaite.com/tv/the-current-state-of-the-cbs-evening-news/
The Current State of the CBS Evening News: Don’t Blame Katie

http://daringfireball.net/2009/07/charging_for_access_to_news_sites
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http://www.washingtonpost.com/wp-dyn/content/article/2009/07/17/AR2009071702437.html?referrer=emailarticle
Adapting Ethics Rules to a New World