The Star’s parent company, McClatchy, reported its net income improved during the fourth quarter, due to cuts in expenses and a slower decline in advertising. The company’s revenue fell by 5 percent, however.
Businessweek reports ad sales were down 6 percent, and 8 percent of the company’s expenses were cut. Circulation revenue was down 3 percent. The news boosted the company’s stock.
McClatchy earned $42 million, or 49 cents per share, in the quarter that ended Dec. 25. That compares with $14.8 million, or 17 cents, a year earlier.
Excluding various one-time items, earnings were $43.2 million in the latest quarter, or 50 cents. Analysts polled by FactSet were on average expecting 42 cents. Adjusted earnings were $33.5 million, or 39 cents, a year ago, when the company took a $24.4 million writedown on investments and land held for sale.
Businessweek writes that McClatchy has been hit harder than other newspaper companies because of the huge hits the real estate industry took in Miami and Sacremento, where the company has the Miami Herald and Sacramento Bee.