McClatchy stock continues downward spiral
August 5, 2015
McClatchy Co. stock prices continue to plummet amid sharp declines in advertising revenue.
The stock prices for the Sacramento-based McClatchy, which owns The San Luis Obispo Tribune and 28 other newspapers, fell from $4.71 a share on Aug. 5, 2014 to a current price of 90 cents. In the past year, total revenue for McClatchy fell 7.7 percent to $269.4 million and advertising sales fell 12.5 percent.
In 2014, McClatchy sold several assets which allowed it to reduce its huge debt, from the purchase of Knight-Ridder nine years ago, to approximately $1 billion.
In June, the Tribune laid off 28 employees and moved its printing operation to Fresno as part of a reorganization strategy designed to cut costs by $25 to $30 million.
“We are on track to achieve the $25 million to $30 million of cost savings in 2015 that we targeted at the onset from these specific initiatives,” CEO Pat Talamantes said in a recent report. “We expect the savings to continue to build over the course of the year and, in light of continued weakness in print advertising revenues, individual newspapers continue to adopt additional cost reduction plans to achieve their budgets.”