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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 2.6 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 some 50% stake in The Seattle Times Company, weekly newspapers in the Puget Sound area and daily newspapers located in Walla Walla and Yakima, Washington, and their related websites and mobile applications. The company traces its roots back to the 1850s, when James McClatchy co-founded The Bee, his first newspaper.

Operations

McClatchy generates nearly 50% 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.

Geographic Reach

Headquartered in Sacramento, California, McClatchy has newspaper production facilities in over five markets in some five states. The company does business in two operating regions: the Western, and Eastern regions. Many of its publications are concentrated in California and the Carolinas.

Sales and Marketing

The media company's websites and mobile applications, e mail products, video and mobile services, and other electronic media enable McClatchy to engage its readers with real time news and information that matters. Digital only subscriptions grew some 40% to over 219,000 subscribers in 2019.

Financial Performance

During 2019, total revenues decreased by 12.1% compared to 2018, primarily due to the continued decline in demand for advertising. The decline in print advertising was primarily a result of large retail advertisers continuing to reduce preprinted inserts and printed ROP advertising in favor of digital products.

The company's net loss in 2019 further falls by $331.4 million to a loss of $411.1 million compared to a $79.8 million loss in the prior year. The increase in a net loss in 2019 compared to 2018 was primarily due to non-cash impairment charges totaling $335.7 million in 2019 compared to $37.3 million in 2018.

Cash held by the company at the end of 2019 decreased by $13.4 million to $37.2 million from $50.6 million in the prior year. Cash used for operations and financing activities were $6.8 million and $13.8 million, respectively, primarily for the repurchase of notes and related expenses. Cash from investing activities was $7.2 million.

Strategy

McClatchy's mission is to deliver strong, independent journalism and information. To accomplish this goal, the company is committed to a three-pronged strategy to grow its businesses and total revenues as a leading local media company: 

First, to maintain its position as a leading local media company in each of the company's markets by providing independent journalism and advertising information essential to its communities on digital platforms and in its printed newspapers; and to grow these audiences for the benefit of its advertisers and its communities; 

Second, to improve digital advertising and audience revenues as its transition to a digitally focused, digitally driven media company. This strategy includes being a leader of local digital businesses in each of the company's markets, growing its digital subscriptions and digital audiences in general by providing compelling websites, e-editions of the printed newspaper, mobile applications, e-mail products, mobile services, video products, and other electronic media; and 

Third, to extend these franchises by supplementing the reach of the digital and printed newspaper and other digital businesses with direct marketing, niche publications, and events and direct mail products so advertisers can capture both mass and targeted audiences with one-stop shopping.

To assist with these strategies, the company continually improve existing digital products and develop new ones, reengineer its operations to reduce legacy costs and strengthen areas driving performance in news, audience, advertising and digital growth.

Company Background

The company traces its roots back to the 1850s, when James McClatchy co-founded The Bee, his first newspaper.

McClatchy Newspapers, Inc.

2100 Q St
Sacramento, CA 95816-6899
Phone: 1 (916) 321-1855

Firm Stats

Employer Type: Privately Owned
Strategic Partnerships, Political and Advocacy: Catherine Bettar
Multimedia Account Manager: Roger Tafoya
Circulation Support Manager: Todd Williams
Employees (This Location): 2,500
Employees (All Locations): 4,100

Major Office Locations

Sacramento, CA

Other Locations

Cambria, CA
Fresno, CA
Los Banos, CA
Merced, CA
Modesto, CA
Sacramento, CA
San Jose, CA
San Luis Obispo, CA
San Mateo, CA
Washington, DC
Doral, FL
Miami, FL
Tallahassee, FL
Columbus, GA
Boise, ID
Belleville, IL
Highland, IL
Shawnee Mission, KS
Lexington, KY
Livonia, MI
Harrisonville, MO
Kansas City, MO
Lees Summit, MO
Raleigh, NC
Clarks Summit, PA
Columbia, SC
Mansfield, TX
Bellingham, WA
Kennewick, WA
Olympia, WA