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NEW YORK (AFX) - McClatchy Co. expects more growth in online advertising next year, particularly in retail advertising, but classified is expected to decline, executives of the second-largest U.S. newspaper publishing company said Wednesday.
Gary Pruitt, CEO of the Sacramento, Calif.-based newspaper publisher, told an investor conference that overall classified advertising was expected to decline next year on weakness in employment and real estate.
McClatchy reported earlier Wednesday that advertising fell 4.7 percent in November compared with the same month a year ago. Pruitt, speaking at a conference sponsored by Credit Suisse, said he expected advertising revenue in December to be better than November, but still post a decline versus a year earlier.
Pruitt said the company's acquisition of Knight Ridder Inc. has gone "very well" to date and that more cost savings were likely to emerge over time.
The deal made it the second largest U.S. newspaper publisher after Gannett Co.
Christian Hendricks, vice president for interactive media, said retail had become the fastest-growing category for online advertising, and that he expected more growth in the year ahead.
Overall online advertising was up about 25 percent in the year to date through November, he said, and make up about 8 percent of the company's advertising revenues.
Responding to a question, Pruitt said the company had no plans to go private, though it remained a possibility long-term for the company -- "but I would stress, long-term," Pruitt said.
Pruitt cited a relatively high share count and debt load, which he projected would be about $3.3 billion at the end of 2006, following the Knight Ridder acquisition. "It's an arrow in our quiver down the road, but it's not something that we think about here and now," Pruitt said of the possibility of going private.
McClatchy shares rose 2 cents to close at $43.24 on the New York Stock Exchange. They have traded in a 52-week range of $38.80 to $60.70. Copyright 2006 Associated Press. All rights reserved. This material may not be
Copyright 2006 AFX News Limited. All Rights Reserved.
