By: E&P Staff Russell Lewis, CEO of The New York Times Co., assured a group of investors and analysts yesterday that the circulation flaps that occurred at Belo and Tribune would not happen at his company.
In a note issued today by Goldman Sachs regarding Lewis' presentation at its Communacopia conference in New York, analyst Peter Appert noted that Lewis "offered a heart-felt summary," specifically citing in-house distribution and a high proportion of home-delivered papers as safeguards against circ fraud.
"We found his comments compelling and believe there is little risk of circulation restatement at [The New York Times Co.]," the note said.
The note lauded the company's long-term potential as executives outlined five growth drivers including new regional facilities, increased color-capacity, and an ongoing focus on Internet revenues.
However, executives cautioned that profit margins at the Times wouldn't be as high as other papers because of its large editorial staff and emphasis on national coverage.
Short-term prospects for growth don't look as hot, with Appert feeling that for now "business conditions remain challenging." September numbers are expected to be weak against strong August gains (up, 7.5% from the same period last year). The entertainment, technology, and real estate categories, which accounts for roughly 30% of the paper's revenues, look soft according to the note.
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