Posted on 02/08/2006 2:03:16 PM PST by abb
By E&P Staff and The Associated Press
Published: February 08, 2006 3:00 PM ET
NEW YORK This morning, The New York Times became the first of the major newspaper companies to report January revenues. Unfortunately, it released "soft January revenue growth as the ever-important national category fell due to weak entertainment ad spending," Goldman Sachs observed in its quick analysis.
Total newspaper advertising for the company fell 0.3%. Overall, however, revenue grew 3.2% in January, aided by advertising revenue from information portal About.com.
The company said total monthly revenue increased to $300.4 million, up from $291 million in January 2005. Without About.com, total revenue edged up 0.7%.
"In January, traditionally a light month for advertising, revenues were on a par with those of the same period last year," President and Chief Executive Janet L. Robinson said in a statement.
Robinson said the Times saw growth in most ad categories, but it wasn't enough to offset lower studio entertainment advertising. The Boston Globe also saw weakness in entertainment and travel advertising.
Online revenue, however, excluding About.com, rose 22%.
"A sustained recovery in the national category is critical to a turnaround in NYT stock performance," the Goldman Sach report pointed out, "and at this point, national results remain volatile from month to month.
"Industry implications: Weak newspaper ad revenue growth is consistent with our expectations that the industry is off to slow start in 2006."
E&P Staff and The Associated Press
An industry that lies to and disrespects its customers on a daily basis.
I hope they fire another 500 hippies.
Imagine what would happen if they reported the REAL circulation numbers.?
Craigslist is the 1000lb gorilla destroying ad revenues.
That's neo-hippy in modern lingo.
So they're talking about giving away dead tree editions for free. I've said it would reach a point where they wouldn't be worth the trees dying...
or progressive hippie
Even after that decline if I were to open a position I'd go short with it.
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