McClatchy Revenue Drops

McClatchy (MNI Quote) said May ad revenue fell 11.5% from a year ago, as real estate advertising dried up with the decline of the housing market.

The Sacramento, Calif., newspaper publisher said it plans to reduce debt and to "exert strong cost controls" in response to what it called an "unclear" environment that may see revenue continue to fall through the second half of the year, if at a lesser pace.

"While real estate was a significant source of revenue growth last year," said CEO Gary Pruitt, "the real estate boom has since turned sour and as a result our real estate advertising revenues have declined, most notably in our California and Florida newspapers."