By: E&P Staff Dow Jones & Co. said on Monday advertising revenue at The Wall Street Journal grew 6.9% in August on a 6.7% gain in volume. The results are compared to the same month last year.
The paper reported lineage increases in financial, classified, and general advertising while technology advertising fell. In the financial category, lineage grew 50.2% on increases in insurance, wholesale, and tombstone advertising. Classified lineage advanced 6.6% due to lineage increases in real estate and other. General advertising lineage rose 3.6% due to growth in consumer electronics, healthcare, and other consumer advertising.
Technology advertising lineage dropped 17% on declines in personal computers, software, and technology professional services.
At Ottaway Newspapers, advertising revenue increased 1.2% due to online increases, up 69%, non-daily, up 14.4%, and preprint, up 6.9%. Classified and other advertising declined 6.1%. Display advertising decreased 3.3% Total print ad volume dropped 5.5%.
Rich Zannino, CEO of Dow Jones, said in a statement that while Dow Jones has been making gains, he warned of a slowdown. "September advertising revenue at the Journal is running below our expectations and prior year."
As a result the company is lowering its third quarter earnings per share to the 8 to 11 cent range.
"Looking forward, based on the current level of bookings, we see a positive trend in Journal advertising revenue resuming in October and the fourth quarter," Zannino said.
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