The McClatchy Company reported lower profits for Q2, as total net income was $40.0 million, down 9.3 percent from $44.1 million in Q206. Revenues, however, rose 173.6 percent to $580 million in Q2 from $212 million last year, thanks to the acquisition of 20 Knight Ridder newspapers, As part of that sale, McClatchy (NYSE: MNI) issued 35 million Class A shares, which also had a negative affect on its earnings per share.

-- Online ad revenue fell to $13.7 million in Q2 from $14 million, a modest year-over-year decrease of 2.1 percent

-- On the topic of its relationship with CareerBuilder, Gary Pruitt, McClatchy’s chairman and CEO, reiterated comments he made last month at the Newspaper Association of America’s Mid-Year Media Review about the possible sale of its 14.4 percent stake in the online recruiter. McClatchy shares ownership of CareerBuilder with Microsoft, (NSDQ: MSFT) which bought a 4 percent stake in May; both Tribune (NYSE: TRB) Company and Gannett (NYSE: GCI) each have a 40.8 percent stake. “We are continuing our talks with Gannett and Tribune about changing our affiliate agreement with CareerBuilder to be more equitable for our newspapers and are hopeful that a resolution will be reached shortly. It is our clear preference to remain with CareerBuilder, and we will update investors once we have made a decision on our online employment solution.” Earnings release | Webcast