About McClatchy Newspapers, Inc.
The McClatchy Company is one of the top newspaper businesses in the US. McClatchy has about 30 daily papers with a combined circulation of about 3 million. Its portfolio includes The Kansas City Star, The Miami Herald, The Charlotte Observer, The Sacramento Bee (California), and the Star-Telegram (Fort Worth, Texas). In addition, it has a 49.5% stake in The Seattle Times Company, operates online news sites in conjunction with many of its papers, and has stakes in other digital media companies. The company traces its roots back to the 1850s, when James McClatchy co-founded The Bee, his first newspaper.
McClatchy generates more than half its revenue through its advertising business, both digital and print. Subscription revenue (about 40%) includes digital-only subscriptions and print/digital bundled subscriptions.
To address the continued structural shift to digital media, the company's newspapers provide editorial content on a wide variety of platforms and formats from its daily newspaper to leading local websites; on social network sites such as Facebook and Twitter; on smartphones and e-readers; and on blogs and in niche publications and websites.
The company's digital marketing agency, excelerate, offers website customization, SEO, social media presence, and other marketing services.
Headquartered in Sacramento, California, McClatchy has newspaper production facilities in 10 markets in 14 states. The company does business in four operating regions: the West, Midwest, Carolinas, and East regions. Many of its publications are concentrated in California and the Carolinas.
Sales and Marketing
McClatchy has newspaper production facilities in 10 markets in about 14 states. The company does business in four operating regions: the West, Midwest, Carolinas, and East regions. Many of its publications are concentrated in California and the Carolinas.
Operating in the shrinking newspaper industry, McClatchy has seen its revenue trend downward over the past several years, dropping from $1.2 billion to $903 million during the five-period between 2013 and 2017. Efforts to garner business through digital subscriptions have slowed the decline, but the losses in newspaper's mainstay -- advertising -- to various digital and other advertising channels have hurt McClatchy and other companies in the newspaper industry.
During fiscal 2017 McClatchy's revenue declined more than 7% to $903 million from 2016 results. The revenue decrease was primarily due to the continued decline in demand from businesses for advertising services; subscription revenue remained flat.
The company's net losses widened in 2017, plunging to a $332 million loss from a $32 million loss in 2016. The drop was due to high operating costs of $861.4 million (95% of the company's $903 million revenue), impairments related to the company's sale of equity investments in CareerBuilder, and more income tax paid in comparison to previous fiscal years.
Cash at the end of 2017 increased slightly to $99.3 million from $94 million at the beginning of the year. Cash provided from operations added $18.1 million, investing activities provided $102.5 million, while financing activities used $26.5 million.
Smaller in stature than some of its rivals, McClatchy is also one of the few big newspaper companies that have not diversified wholesale into other forms of media. Both Gannett and Tribune, for example, own several television stations, while Advance Publications and Graham Holdings have diversified into magazines and education publishing, respectively. Reliant on newspaper advertising and subscriptions for the bulk of its sales, McClatchy offers a portrait of the industry's downward spiral caused by readers migrating away from print publications for their news.
McClatchy is working to boost revenue by transforming itself into a mixed-media news business, with a particular focus on digital marketing. The company is investing in its digital marketing agency, excelerate, which offers website customization, SEO, social media presence, and other marketing services. Looking to boost excelerate's revenue, McClatchy is expanding the agency's footprint into markets beyond its newspaper territory.
Across other areas of its digital business, the company continues to invest in digital publishing operations to reach readers online and build new followings for its mastheads.
2100 Q ST
Sacramento, CA 95816-6899
Phone: 1 (916) 321-1855
Employer Type: Privately Owned
Strategic Partnerships, Political and Advocacy: Catherine Bettar
Multimedia Account Manager: Roger Tafoya
Vp-operations: Frank Whittaker
Employees (This Location): 2,500
Employees (All Locations): 5,143
Los Banos, CA
San Jose, CA
San Luis Obispo, CA
San Mateo, CA
Shawnee Mission, KS
Kansas City, MO
Lees Summit, MO
Clarks Summit, PA