McClatchy Co., E.W. Scripps Co. and other newspaper owners predicted declines in newspaper revenue next year as an economic slowdown curbs advertising sales.
McClatchy, the third-largest U.S. newspaper publisher, said in a statement Wednesday that sales will fall by a mid-single-digit percentage. Scripps, in a separate statement, forecast a low-single- digit sales drop at its newspaper unit. Washington Post Co. predicted a revenue decline at its namesake title.
Collapsing demand for U.S. housing and cuts in spending by automakers reduced classified ads, which accounted for 35 percent, or $17 billion, of the industry’s ad revenue last year, according to the Newspaper Association of America. McClatchy and Scripps, owner of the Rocky Mountain News, both blamed a challenging economic environment for their 2008 forecasts.
“Advertising trends will remain tough in the first half of the year, improving in the second half,” McClatchy chief financial officer Patrick Talamantes said Wednesday at an investor conference.
Scripps gained 72 cents to $43.86 in New York Stock Exchange trading.
Sacramento, Calif.-based McClatchy, whose chain includes the Miami Herald and the Sacramento Bee, rose 5 cents to $13.49. Gannett Co., the largest U.S. newspaper owner, fell 2 cents to $35.73, and Washington Post fell $7.50 to $792.50.
Scripps, which also owns cable’s Food Network, said revenue will rise as much as 10 percent at its TV channels. The Cincinnati-based company said it still expects to complete its split into two publicly traded companies by the end of the second quarter.
