Image by Flickr user marcelgermain Image by 20090723-paper.jpg It'll float, but it still doesn't seem sea-worthy.

Two media conglomerates that own more than a dozen South Carolina daily newspapers and news stations have reported profits during the second quarter. But it's still not a pretty picture.

The two entities, McClatchy and Media General, still face falling revenue and have generated profits by cutting costs.

The details of which I'll point you to The Charleston Regional Business Journal for: McCaltchy and Media General.

Not particularly addressed is why it's a less-than-stellar situation.

Well, this anonymous commenter pretty well summed it up:

When your gross revenues are falling at a 30% rate and your advertising rate is doing the same, all while your subscription rate rises at only 2.9% after 100% price increases across the board. The writing is on the wall and only the willfully blind can't see it.

In short order McClatchy's debt payments will overwhelm their net income. This is unavoidable with no way out. Going to online only will not be a solution as they can't close down or sell operations without bank permission. The banks are not going to go for it because they can't bring in enough online income to meet the debt.

It is a no win situation. All [McClatchy CEO] Pruitt can hope to do is delay the inevitable and pad his pockets while in the mean time, the only cost reductions that they really have left is more layoffs. ...

I'll give you that the statement is dramatic, but it may very well be what we see in the 3rd or 4th quarter unless there's a drastic change on the way.