By: E&P Staff Dow Jones reported that May advertising revenue at The Wall Street Journal grew 10.1% on a 12.6% increase in ad volume. The results include the Weekend Edition.
The company said that advertising yield increased ?modestly? in the display categories but was more than offset by higher mix of lower rate classified ad volume.
The paper reported lineage increases in the technology, classified, and financial advertising categories. General advertising declined slightly. Technology lineage increased 29%. Classified ad lineage rose 27.5%. Financial ad lineage was up 15.7%. General ad lineage fell 1.7%.
?Through the end of May, second quarter to date advertising revenue at the Journal was up a solid 9.2%,? Rich Zannino, CEO of the company, said in a statement. ?Because of our positive outlook for June together with stronger than expected revenue and profit growth in our Enterprise Media Group and favorable expense performance, we expect to meet our second-quarter outlook for earnings per share before special items in the low-to-mid $.30 per share range compared with $.34 per share in the second quarter of 2005.?
The company plans to take a one-time charge in Q2 related to outsourcing a number of administrative functions, an estimated $6 million to $8 million yielding an annual savings of $5 million to $7 million in 2007.
At Ottaway Newspapers, ad revenue slipped 2% on a 6.8% decline in ad volume more than offset increased ad rates and an increase in Internet ad revenue. Ad volumes in the display, national, auto, help wanted, and other classified categories declined.
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