McClatchy says ad sales recovering, shares jump

Palm Beach, FL 12/7/11 (StreetBeat) --Newspaper publisher McClatchy Co (NYSE:MNI) said the slide in advertising revenue was arrested to some extent in the first two months of the current quarter, helped largely by retail and national advertising.

Shares of Sacramento, California-based McClatchy, that have lost nearly 80 percent of their value since hitting a year-high of $5.61 on January 19, were trading up more than 14 percent at $1.35 on Wednesday on Nasdaq.

Advertising revenue for October and November fell 5.6 percent, compared with a 10 percent decline in the first nine months of 2011, the company said at a conference.

"Sunday circulation has improved dramatically and is now growing, up 1.9% in the last five months," Chief Executive Gary Pruitt said in a statement.

More than a third of McClatchy's total advertising revenue come from its Sunday papers.

The company also said it will receive nearly $30 million in dividends this month from its equity holdings, including its stakes in internet companies Classified Ventures and CareerBuilder.

Shares are currently trading up 18% at $1.40.

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