The McClatchy Co. reported a slightly larger net loss on Wednesday due to declining advertising revenue. Meanwhile, compensation and other costs at the nation's third-largest newspaper company fell while digital advertising increased.
The owner of The Miami Herald, The Sacramento Bee and other newspapers said it lost $2.1 million, or 2 cents per share, in the January-March period. That compares with a loss of $2 million, or 2 cents per share, a year ago.
Revenue fell 5 percent to $288.3 million from $303.7 million.
Advertising revenue fell 7 percent to $209.8 million from $225.1 million. Digital advertising revenue grew 3 percent and accounted for about 22 percent of total ad revenue, the company said.
McClatchy said that its circulation revenue increased by less than half of a percent to $66.4 million mostly due to price increases.
Total operating expenses fell 8 percent to $260.3 million from $283.3 million.
Gary Pruitt, McClatchy's chairman, president and CEO, is leaving the company on May 16 to become president and CEO of The Associated Press. Pat Talamantes, McClatchy's current finance chief, will replace Pruitt.
Pruitt said advertising trends improved during the quarter, with revenue declines getting smaller in each of the three months.
McClatchy's stock climbed 12 cents, or 5 percent, to $2.76 early afternoon trading. The shares have traded in a 52-week range of $1.05 to $3.20.