New York Times Co. Ad Revenues Spiked 5.8% In Nov.

By: E&P Staff November 2005 advertising revenues at The New York Times Co. increased 5.8% over the same period in 2004, the highest growth rate since the beginning of the year, the company announced Tuesday.

Overall revenue was up 3.1% compared to November 2004, the company said. Excluding About.com, acquired this March, advertising revenues increased 3.2%, and total company revenues were up 1.2%, the company said.

At the same time, the Times Co. updated its full-year 2005 guidance, and outlook for 2006.

For 2005, it said it expected revenue growth to be in the "low single digits," with circulation revenue to be flat to down slightly. The staff reduction program announced in September will lead to an expected charge of $40 million to $50 million to be recorded in the fourth quarter.

Internet-related businesses are expected to account for revenue of approximately $194 to $198 million in revenue in 2005, the company said.

"The media marketplace has been challenging in 2005 and we expect it will continue to be next year," said Janet L. Robinson, president and chief executive officer. "To address the issues that we face and to take advantage of opportunities we see, we have aggressively strengthened our print, online and broadcast platforms as demonstrated by the acquisitions of About.com and KAUT-TV, as well as our investment in Metro Boston. We continue to develop innovative, new products that target specific audiences at both our traditional and online properties and to provide advertising solutions across our platforms. We also remain very committed to operating more efficiently and using technology to decrease expenses. The combined effect of all of these actions will benefit us in 2006."

As for 2006, the Times Co. said it was not providing an expected range for earnings, revenue growth or expense growth, "given the limited visibility on advertising in 2006."

"Across all of our newspaper properties we expect that revenues will benefit from higher advertising rates in 2006," the company said. "At [The New York Times], we project rates will rise about 5%, and at the [Boston] Globe and our Regional Media Group, we expect them to increase about 3%.

The company said it expected to have strong double-digit revenue and operating profit growth from About.com.

Newsprint cost per ton will increase in an expected range of 11% to 13%, the company said.

In November 2005, the flagship New York Times and related New York businesses had an increase in advertising revenues of 5.0%. National advertising revenues increased as strength in advocacy, financial services, hotel, hospital and transportation/travel advertising offset weakness in the studio entertainment, American fashion and pharmaceutical categories. Retail advertising revenues increased on growth in mass market advertising. Classified advertising revenues rose as gains in real estate advertising offset softness in help-wanted and automotive advertising.

In the New England Media Group, ad revenues decreased 2.2%. The company said national advertising revenues increased as strength in banking, health care and other corporate advertising offset weakness in entertainment, travel and national automotive advertising. Retail advertising revenues decreased largely because of softness in department store and home-related advertising. Classified advertising revenues were lower as weakness in automotive advertising offset growth in real estate and help-wanted advertising.

In its Regional Media Group, advertising revenues were up 5.2%. Excluding the North Bay Business Journal, which was acquired in February 2005, advertising revenues grew 4.8%. It said retail advertising revenues decreased as softness in telecommunications and department stores advertising offset growth in the home improvement, medical/hospital and mass markets categories. Classified advertising revenues increased as gains in help-wanted and real estate advertising offset weakness in automotive advertising.

Internet ad revenues, which are included in the three media groups, increased 30.5% on strong growth in display advertising and in all classified advertising categories. Year-to-date Internet ad revenues grew 29.4%.

TimesSelect, the new fee-based product on NYTimes.com, now has 330,000 subscribers, the company said. In early November, the company said it had 270,000 subscribers, about half of whom paid for the service because they are not print subscribers.

Circulation revenues for November decreased 2.0%. Circulation revenues increased at the Regional Media Group, and declined at The New York Times Media Group and the New England Media Group.