SACRAMENTO, Calif. —Newspaper publisher McClatchy Co., the owner of The Eagle, said today that its second-quarter net income dropped sharply from last year's results that were boosted by a gain from debt restructuring.
But the company said advertising trends are improving and its revenue declined at a slower rate than in the first quarter.
McClatchy earned $7.3 million, down from $42.2 million in the same period a year earlier.
The quarter's revenue fell 6 percent to $342 million from $365.3 million. This was a smaller drop than the 8 percent drop the company saw in the first three months of the year.
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Advertising revenue declined 8.2 percent, compared with an 11.2 percent decline in the first quarter and a 20.5 percent drop in the fourth quarter of 2009.
Chairman and CEO Gary Pruitt said McClatchy was "encouraged by improving trends" in the second quarter, as ad revenue declined at a slower pace in each of the three months of April-June period.
The company expects ad revenue trends to continue to improve in the current quarter. It sees advertising revenue declining in the mid-single digits in the third quarter.
Sacramento-based McClatchy also publishes the Kansas City Star, Sacramento Bee, Miami Herald and other newspapers.