McClatchy reported a 7 percent decline in revenue in the third quarter as the newspaper publisher continued to be hurt by declines in print advertising.
The company also announced that it has begun a review of its real estate assets to identify properties that it may sell. The News & Observer is already evaluating real estate proposals from developers interested in its downtown Raleigh headquarters.
McClatchy, owner of The News & Observer, The Charlotte Observer and 27 other newspapers, had revenue of $258.1 million in the third quarter. Advertising revenue fell 10.2 percent to $156.7 million.
The company did see a slight improvement in spending by national advertisers. National advertising revenue increased 2 percent in the quarter, with national digital advertising revenue up 35.2 percent.
McClatchy has been pursuing revenue-generating initiatives in an attempt to offset declines in print advertising. The company has also implemented a number of cost-saving measures this year. In the fourth quarter, the company expects its cash expenses to decline in the high-single-digit percent range reflecting savings from its “legacy cost reduction initiatives.”
Excluding certain items, McClatchy reported third-quarter net income of $3.2 million, compared with a loss of $700,000 during the same period a year ago.
McClatchy shares, which opened at $1.44, were flat in early trading Tuesday. The company gave its stock a boost by repurchasing 1.35 million shares of its stock in the third quarter at a weighted average price of $1.12.
In August, the company was warned after its stock price fell below the New York Stock Exchange’s $1-a-share minimum, jeopardizing the Sacramento, Calif.-based company’s continued listing on the exchange.