Thursday, July 24, 2008

More cuts ahead at the Herald?

NEW YORK, July 24 (Reuters) - Newspaper publisher McClatchy Co. [parent company of The Miami Herald] reported a more than 40 percent drop in quarterly profit on Thursday as advertising revenue plunged, but shares shot up 5 percent after the company said it still will be able to pay its debt.

Buried in the Reuters story was this ominous quote from McClatchy CEO Gary Pruitt:
"We are committed to doing more if revenues decline further in the second half," Pruitt said. "Our board will meet during the third quarter to consider dividend policies and we will look at additional cost-saving measures as necessary."

Additional cost-saving measures?

Does that mean more staff cuts at the Herald (and other McClatchy papers) are being looked at?

Time will tell but it certainly doesn't look good.

The economy is still in the tank. The only bright spot here is that McClatchy's "online advertising revenues grew a strong 12.5%," according to a lengthy press release on second quarter results.

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