McClatchy Newspapers revenues declined 3.5 percent in the second quarter, as declines in print advertising continued to be a drag on the company’s performance.
McClatchy, owner of The News & Observer, The Charlotte Observer and 28 other daily newspapers, reported Thursday net income of $11.8 million, or 14 cents a share, versus net income of $26.9 million, or 31 cents per share, during the second quarter of 2012.
McClatchy, like other newspaper publishers, has been working to offset a severe decline in print advertising revenue by increasing online revenue.
While total advertising revenues declined 6.7 percent in the second quarter, digital-only revenues from advertising and circulation increased 10.6 percent.
Circulation revenue increased 4.8 percent, boosted by McClatchy’s recent implementation of metered pay walls at its newspaper websites. The effort, which the company calls its Plus Program, added more than $8 million in revenues during the quarter and is expected to generate about $25 million in revenues this year.
In a statement, CEO Pat Talamantes said digital revenue gains continue to narrow the company’s overall revenue declines. McClatchy reported year-over-year revenue declines of 3.8 percent in the first quarter of 2013 and 4.9 percent in the second quarter of 2012.
"We believe that we will continue to benefit in the future as our efforts to build our circulation revenues gain even more traction," Talamantes said.
McClatchy’s debt at the end of the quarter was $1.566 billion, unchanged from the previous quarter.
McClatchy shares were flat in afternoon trading Thursday. The stock, which opened at $3.06, is down 7 percent this year.