Posted on 07/15/2003 6:29:25 PM PDT by Timesink
By Michele Gershberg
NEW YORK (Reuters) - The New York Times Co. said Tuesday second-quarter net profit fell 8 percent as advertising slumped at its newspapers during the Iraq war, but the company pledged more stringent cost controls.
The results followed the appointment on Monday of Bill Keller as executive editor at The New York Times newspaper, whose reputation was rocked by a plagiarism scandal. Company executives have said that the affair, though a blow to the Times's prestige, would not hurt its business.
The company, which also publishes the Boston Globe and International Herald Tribune, said earnings fell to $72.8 million, or 47 cents per share, in the second quarter, from $78.8 million, or 51 cents.
Earnings came in a penny above the average estimate of 46 cents per share, according to tracking firm Reuters Research, a unit of Reuters Group Plc.
New York Times Co. Chief Executive Russell Lewis said Tuesday the company expected "an improved ad environment" later this year, but would carry out capital expenditures more slowly than planned and cut other costs to bring back profit growth.
"Accordingly, we have revised our full-year guidance to incorporate a lower level of expenses and a significantly reduced level of capital expenditures," Lewis said.
The Times maintained its outlook that advertising revenues for its newspaper group, excluding the International Herald Tribune, would grow between 3 percent and 5 percent for all of 2003, but revised annual expenditure growth down to a 3.5 percent to 4.5 percent rise from a previous 4.5 percent to 5.5 percent increase.
The company will make a $50 million reduction in capital expenditures for projects now postponed until the economy improves, company officials said during a conference call. The Times said it expected annual expenses, including the International Herald Tribune, to rise 6.5 percent to 7.5 percent.
The Times said it expected to meet earlier estimates of low to middle single-digit EPS growth for the year.
James Marsh, an analyst at SG Cowen Securities, said the Times posted slightly softer revenues than he had expected, but noted the newspaper group's efforts to cut costs aggressively.
"I think part of that (softer revenue) is driven by their geographical diversity ... It has a lot of exposure to the Northeast, which we keep hearing is a weaker ad market than the rest of the U.S. I think that will eventually turn, but not in the near term," Marsh said. He rates the stock a "hold."
Total revenues for the media company rose to $801.9 million in the quarter from $772.2 million a year earlier. The revenue results were helped in part by the inclusion of the International Herald Tribune in newspaper group results this year. In January, the Times purchased the 50 percent of the paper it did not already own.
Advertising slumped in March and April during the U.S.-led war in Iraq, company officials said. They said help-wanted advertising declined 21 percent during the quarter and travel advertisements suffered as the SARS respiratory disease scare hit Asia.
Advertising revenues grew 3.4 percent and circulation revenues rose 4.4 percent in the quarter, the company said. Total costs rose 6.6 percent, felled by a 6.3 percent rise in newsprint prices.
New York Times Co. shares closed 54 cents higher at $44.45 on Tuesday on the New York Stock Exchange.
Reuters/VNU
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"Our second-quarter financial results were dampened by the war-related advertising weakness that we experienced early in the quarter," said Russell T. Lewis, president and CEO. "Our advertising results, however, improved considerably toward the end of the quarter with our Newspaper Group experiencing a 4.6 percent year-over-year gain in June ad revenues.
"And, while we expect an improved ad environment in the back-half of the year, we are not relying exclusively on it. To better assure that our financial performance for the second half of the year returns to solid year-over-year gains, we are also taking strong action on the cost side of our business.
"Accordingly, we have revised our full-year guidance to incorporate a lower level of expenses and a significantly reduced level of capital expenditures. In the past we've said that we would adjust the cost side of our enterprise to match the revenue picture. The war and SARS took a significant bite out of our second-quarter ad revenues and we're responding, as we said we would, by significantly reducing the cost side of the business.
"For the year, we continue to believe that we will be able to achieve a full-year EPS growth rate in the low- to mid-single digits."
Earnings per share and net income noted above include the following items:
-- pre-tax income of $1.3 million ($0.8 million after tax, or
less than $.01 per share) in the second quarters of 2003 and
2002 related to a non-compete agreement and
-- a pre-tax charge of $3.0 million ($1.8 million after tax, or
$.01 per share) in the second quarter of 2002 related to work
force reductions.
Revenues
In January, the Company purchased the remaining 50 percent interest in the International Herald Tribune (IHT) which it did not previously own. Beginning in 2003, results for the IHT are included in the Newspaper Group.
Total revenues for the Company rose 3.8 percent to $801.9 million in the second quarter from $772.2 million in the 2002 second quarter. Advertising revenues (66 percent of total revenues) grew 3.4 percent and circulation revenues (28 percent of total revenues) rose 4.4 percent in the second quarter compared with the same period in 2002. Excluding the IHT, total revenues increased 1.5 percent, advertising revenues rose 2.0 percent and circulation revenues were on a par compared with the second quarter of 2002.
Costs and Expenses
Total costs and expenses in the second quarter increased 6.6 percent to $671.8 million from $630.5 million in the 2002 second quarter. Excluding the IHT, total costs and expenses in the second quarter rose 3.1 percent compared with the second quarter of 2002, mainly because of higher benefits and compensation costs as well as an increase in newsprint expense.
Newsprint expense increased 6.3 percent in the second quarter compared with the 2002 second quarter. Excluding the IHT, newsprint expense rose 4.2 percent, resulting from an increase in the Company's average cost per ton of newsprint of 8.1 percent partially offset by a decrease in consumption of 3.9 percent.
Operating Profit
Operating profit in the second quarter decreased 8.2 percent to $130.1 million from $141.7 million in the second quarter of 2002, primarily because of higher costs and expenses, partially offset by an increase in advertising revenues.
EBITDA
EBITDA (earnings before interest, taxes, depreciation and amortization and other non-operating items) in the second quarter declined 6.3 percent to $166.4 million from $177.5 million in the 2002 second quarter. The decrease was primarily because of higher costs and expenses, partially offset by an increase in advertising revenues.
The Company believes that EBITDA, a non-GAAP financial measure, is a useful metric for evaluating its financial performance because of its focus on the Company's results from operations before depreciation and amortization. EBITDA is a common alternative measure of performance used by investors, financial analysts and rating agencies. These groups use EBITDA, along with other measures, to estimate the value of a company and evaluate a company's ability to meet its debt service requirements. A reconciliation of EBITDA to net income, as well as additional information concerning EBITDA, is included in the exhibits to this release.
Newspaper Group
Total Newspaper Group revenues grew 3.8 percent in the second quarter to $745.9 million from $718.9 million in the prior-year quarter. Advertising revenues increased 3.3 percent and circulation revenues increased 4.4 percent in the second quarter compared with the same period in 2002. Excluding the IHT, total revenues rose 1.3 percent, advertising revenues rose 1.7 percent and circulation revenues were on a par compared with the second quarter of 2002.
Operating profit for the Newspaper Group decreased 7.5 percent to $126.6 million in the second quarter from $136.8 million in the 2002 second quarter, mainly because of higher benefits and compensation costs as well as an increase in newsprint expense, partially offset by an increase in advertising revenues.
Broadcast Group
Broadcast Group revenues declined 2.7 percent in the second quarter to $37.9 million from $39.0 million in the same period in 2002. Operating profit decreased 21.1 percent in the second quarter to $10.3 million from $13.0 million in the 2002 second quarter, primarily due to lower advertising revenues related to decreased political advertising, coupled with higher benefit, compensation and promotion costs.
New York Times Digital
Revenues for New York Times Digital grew 21.7 percent in the second quarter to $21.6 million from $17.8 million in the 2002 second quarter, and operating profit increased to a record $4.3 million from $1.9 million, primarily due to higher advertising revenues resulting from increased volume.
Joint Ventures
Income from joint ventures totaled $0.6 million in the second quarter compared with a loss of $2.3 million in the 2002 second quarter. Beginning in 2003, the operating results of the IHT are no longer included in net income/(loss) from joint ventures.
Income Taxes
In 2003 the Company's effective income tax rate for the second quarter was 39.5 percent compared with 39.0 percent for the second quarter of 2002.
Interest Expense-net, Shares, Cash and Total Debt
Interest expense-net, in the second quarter of $11.5 million was nearly equal to $11.6 million in the second quarter of 2002. The Company had higher interest capitalized related to capital expenditures, partially offset by an increase in interest expense in the second quarter compared with the 2002 second quarter. While interest rates were lower, the Company had a higher level of debt outstanding.
In the second quarter, the Company repurchased 1.2 million shares at a cost of $54.5 million. Approximately $185.4 million remains from the Company's current share repurchase authorization at the end of the second quarter. Class A and Class B common shares outstanding at the end of the quarter totaled 150.3 million shares.
As of June 29, 2003, the Company's cash and cash equivalents were $33.4 million and total debt was $968.6 million.
2003 Guidance based on GAAP
Item (a) Previous 2003 New 2003
Guidance Guidance
----------------------------------------------------------------------
Newspaper Group Advertising Revenues Up 3 to 5% Up 3 to 5%
----------------------------------------------------------------------
Newspaper Group Circulation Revenues Up 3 to 5% Up 3 to 5%
----------------------------------------------------------------------
Total Company Expenses (b) Up 4.5 to 5.5% Up 3.5 to 4.5%
----------------------------------------------------------------------
Depreciation & Amortization $152 to $157 $148 to $153
million million
----------------------------------------------------------------------
Capital Expenditures (c) $210 to $240 $160 to $190
million million
----------------------------------------------------------------------
Income/(loss) from Joint Ventures A loss of A loss of
$7 to $11 $7 to $11
million million
----------------------------------------------------------------------
Interest Expense $45 to $49 $45 to $49
million million
----------------------------------------------------------------------
Tax Rate 39.5% 39.5%
----------------------------------------------------------------------
Diluted Earnings Per Share Growth Low- to Low- to
mid-single mid-single
digits digits
----------------------------------------------------------------------
(a) 2003 guidance excludes the IHT.
(b) Total Company expenses including the IHT are expected to increase 6.5 to 7.5% in 2003.
(c) Includes costs of $75 to $80 million in 2003 related to the Company's interest in a new headquarters in New York City, which the Company expects to occupy in 2006.
Conference Call Information
The conference call will be held on Tuesday, July 15, at 11:30 a.m. (E.T.) The live webcast will be accessible through the Investors section of the Company's Web site, www.nytco.com, and other Web services including CCBN's Individual Investor Center and CCBN's StreetEvents for institutional investors.
To access the call, dial 800-314-7867 (in the United States) and 719-867-0640 (international callers) at least 10 minutes prior to the scheduled start of the call. In addition, a replay of the call will be available online at www.nytco.com. A digital replay of the call will also be available at 888-203-1112 (in the United States) and 719-457-0820 (international callers) beginning approximately two hours after the call until 5 p.m. (E.T.) on July 17. The access code is 488386.
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those predicted by such forward-looking statements. These risks and uncertainties include national and local conditions, as well as competition, that could influence the levels (rate and volume) of retail, national and classified advertising and circulation generated by the Company's various markets and material increases in newsprint prices. They also include other risks detailed from time to time in the Company's publicly-filed documents, including the Company's Annual Report on Form 10-K for the period ended December 29, 2002. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.
The New York Times Company (NYSE: NYT), a leading media company with 2002 revenues of $3.1 billion, includes The New York Times, The International Herald Tribune, The Boston Globe, 16 other newspapers, eight network-affiliated television stations, two New York City radio stations and more than 40 Web sites, including NYTimes.com and Boston.com. For the third consecutive year, the Company was ranked No. 1 in the publishing industry in Fortune's 2002 list of America's Most Admired Companies. In 2003 the Company was named by Fortune as one of the 100 Best Companies to Work For. The Company's core purpose is to enhance society by creating, collecting and distributing high-quality news, information and entertainment.
Attachments: Condensed Consolidated Statements of Income
Segment and Statistical Information
Newspaper Group Revenues by Division
Footnotes
THE NEW YORK TIMES COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Statements of Income are prepared in accordance with accounting
principles generally accepted in the United States of America (GAAP).
(Dollars and shares in thousands, except per share data)
----------------------
Second Quarter
----------------------
2003 2002
----------------------
Revenues
Advertising $530,564 $512,947
Circulation 221,304 211,899
Other (a) 50,023 47,365
----------------------
Total 801,891 772,211
Costs and expenses 671,834 630,483
----------------------
Operating profit 130,057 141,728
Net income/(loss) from joint ventures 555 (2,262)
Interest expense - net 11,484 11,600
Other income (b) 1,250 1,250
----------------------
Income before income taxes 120,378 129,116
Income taxes 47,549 50,355
----------------------
Net Income $72,829 $78,761
======================
Average Number of Common Shares:
Basic 150,730 151,789
Diluted 153,403 155,555
Basic Earnings Per Share $ 0.48 $ 0.52
======================
Diluted Earnings Per Share $ 0.47 $ 0.51
======================
Dividends Per Share $0.145 $0.135
======================
----------------------
Six Months
----------------------
2003 2002
----------------------
Revenues
Advertising $1,043,718 $1,001,594
Circulation 442,305 413,154
Other (a) 99,608 94,560
----------------------
Total 1,585,631 1,509,308
Costs and expenses 1,333,279 1,269,049
----------------------
Operating profit 252,352 240,259
Net income/(loss) from joint ventures (5,670) (2,193)
Interest expense - net 23,286 22,155
Other income (b) 10,777 2,500
----------------------
Income before income taxes 234,173 218,411
Income taxes 92,498 85,180
----------------------
Net Income $141,675 $133,231
======================
Average Number of Common Shares:
Basic 151,287 151,446
Diluted 154,001 154,883
Basic Earnings Per Share $ 0.94 $ 0.88
======================
Diluted Earnings Per Share $ 0.92 $ 0.86
======================
Dividends Per Share $0.280 $0.260
======================
See footnotes page for additional information.
THE NEW YORK TIMES COMPANY
SEGMENT AND STATISTICAL INFORMATION
Revenues, Operating Profit (Loss) and Depreciation & Amortization
are prepared in accordance with GAAP.
(Dollars and Copies in Thousands)
-------------------------------------
Second Quarter 2003
-------------------------------------
Operating Depreciation
Revenues Profit & Amortization
(Loss)
--------------------------------------------
Newspapers $745,915 $126,575 $29,352
Broadcast 37,926 10,289 2,325
New York Times Digital 21,626 4,285 1,299
Intersegment
eliminations (c) (3,576) - -
Unallocated Corporate
expenses - (11,092) 2,802
-------------------------------------
Total $801,891 $130,057 $35,778
=====================================
-------------------------------------
Six Months Ended June 29, 2003
-------------------------------------
Operating Depreciation
Revenues Profit & Amortization
(Loss)
--------------------------------------------
Newspapers $1,480,966 $252,175 $60,315
Broadcast 70,131 15,251 4,563
New York Times Digital 41,251 7,481 2,832
Intersegment
eliminations (c) (6,717) - -
Unallocated Corporate
expenses - (22,555) 5,597
-------------------------------------
Total $1,585,631 $252,352 $73,307
=====================================
-------------------------------------
Second Quarter 2002
-------------------------------------
Operating Depreciation
Revenues Profit & Amortization
(Loss)
--------------------------------------------
Newspapers $718,880 $136,806 $31,603
Broadcast 38,977 13,034 1,943
New York Times Digital 17,772 1,918 2,045
Intersegment
eliminations (c) (3,418) - -
Unallocated Corporate
expenses - (10,030) 2,468
-------------------------------------
Total $772,211 $141,728 $38,059
=====================================
-------------------------------------
Six Months Ended June 30, 2002
-------------------------------------
Operating Depreciation
Revenues Profit & Amortization
(Loss)
--------------------------------------------
Newspapers $1,410,348 $239,631 $63,948
Broadcast 70,936 19,442 3,889
New York Times Digital 33,934 2,099 4,009
Intersegment
eliminations (c) (5,910) - -
Unallocated Corporate
expenses - (20,913) 4,973
-------------------------------------
Total $1,509,308 $240,259 $76,819
=====================================
--------------------------------------------
Second Quarter 2003
--------------------------------------------
Weekday/ % Change Sunday % Change
Daily vs. vs.
2002 2002
--------------------------------------------
Average Net Paid
Circulation (d)
The New York Times 1,087.9 -3.6% 1,628.5 -3.1%
The International Herald
Tribune 220.7 N/A N/A N/A
New England Newspaper
Group 553.4 -2.4% 818.2 -2.3%
Regional Newspapers 600.3 -0.3% 651.8 -1.2%
--------------------------------------------
Six Months Ended June 29, 2003
--------------------------------------------
Weekday/ % Change Sunday % Change
Daily vs. vs.
2002 2002
--------------------------------------------
Average Net Paid
Circulation (d)
The New York Times 1,106.2 -3.5% 1,650.3 -2.7%
The International Herald
Tribune 223.0 N/A N/A N/A
New England Newspaper
Group 546.2 -4.1% 809.4 -3.0%
Regional Newspapers 625.5 -0.4% 682.8 -1.0%
See footnotes page for additional information.
THE NEW YORK TIMES COMPANY
NEWSPAPER GROUP REVENUES BY DIVISION
Revenues are prepared in accordance with GAAP.
(Dollars in Thousands)
-------------------
2003
-------------------
Qtr 1 %
Change
vs.
2002
-------------------
The New York Times
Advertising $276,737 4.0%
Circulation 145,978 8.0%
Other 31,528 2.1%
-----------
Subtotal $454,243 5.1%
-----------
International Herald Tribune
Advertising $ 8,213 N/A
Circulation 9,500 N/A
Other 349 N/A
-----------
Subtotal $18,062 N/A
-----------
Total New York Times
Advertising $284,950 7.1%
Circulation 155,478 15.0%
Other 31,877 3.2%
-----------
Total $472,305 9.3%
-----------
New England Newspaper Group
Advertising $104,282 0.7%
Circulation 42,128 -2.1%
Other 8,206 18.8%
-----------
Total $154,616 0.7%
-----------
Regional Newspapers
Advertising $ 80,989 2.4%
Circulation 23,395 1.6%
Other 3,746 1.4%
-----------
Total $108,130 2.2%
-----------
Total Newspaper Group Excluding
International Herald Tribune
Advertising $462,008 3.0%
Circulation 211,501 5.1%
Other 43,480 4.8%
-----------
Total $716,989 3.7%
===========
Total Newspaper Group
Advertising $470,221 4.8%
Circulation 221,001 9.8%
Other (a) 43,829 5.6%
-----------
Total $735,051 6.3%
===========
-------------------
2003
-------------------
Qtr 2 %
Change
vs.
2002
-------------------
The New York Times
Advertising $273,604 1.4%
Circulation 146,895 0.2%
Other 32,594 0.6%
-----------
Subtotal $453,093 1.0%
-----------
International Herald Tribune
Advertising $ 7,611 N/A
Circulation 9,869 N/A
Other 387 N/A
-----------
Subtotal $17,867 N/A
-----------
Total New York Times
Advertising $281,215 4.2%
Circulation 156,764 6.9%
Other 32,981 1.8%
-----------
Total $470,960 4.9%
-----------
New England Newspaper Group
Advertising $116,013 2.6%
Circulation 42,949 -1.7%
Other 8,056 21.0%
-----------
Total $167,018 2.2%
-----------
Regional Newspapers
Advertising $ 82,656 1.2%
Circulation 21,591 -0.1%
Other 3,690 6.6%
-----------
Total $107,937 1.1%
-----------
Total Newspaper Group Excluding
International Herald Tribune
Advertising $472,273 1.7%
Circulation 211,435 -0.2%
Other 44,340 4.3%
-----------
Total $728,048 1.3%
===========
Total Newspaper Group
Advertising $479,884 3.3%
Circulation 221,304 4.4%
Other (a) 44,727 5.2%
-----------
Total $745,915 3.8%
===========
-------------------
2003
-------------------
Six Months %
Change
vs.
2002
-------------------
The New York Times
Advertising $550,341 2.7%
Circulation 292,873 3.9%
Other 64,122 1.3%
-----------
Subtotal $907,336 3.0%
-----------
International Herald Tribune
Advertising $15,824 N/A
Circulation 19,369 N/A
Other 736 N/A
-----------
Subtotal $35,929 N/A
-----------
Total New York Times
Advertising $566,165 5.7%
Circulation 312,242 10.8%
Other 64,858 2.5%
-----------
Total $943,265 7.1%
-----------
New England Newspaper Group
Advertising $220,295 1.7%
Circulation 85,077 -1.9%
Other 16,262 19.9%
-----------
Total $321,634 1.5%
===========
Regional Newspapers
Advertising $163,645 1.8%
Circulation 44,986 0.8%
Other 7,436 3.9%
-----------
Total $216,067 1.7%
===========
Total Newspaper Group Excluding
International Herald Tribune
Advertising $934,281 2.3%
Circulation 422,936 2.4%
Other 87,820 4.5%
-----------
Total $1,445,037 2.5%
===========
Total Newspaper Group
Advertising $950,105 4.0%
Circulation 442,305 7.1%
Other (a) 88,556 5.4%
-----------
Total $1,480,966 5.0%
===========
See footnotes page for additional information.
THE NEW YORK TIMES COMPANY
FOOTNOTES
(a) Other revenue consists primarily of revenue from wholesale
delivery operations and news services.
(b) Other income in the second quarters of 2003 and 2002 consists of
income ($1.3 million) related to a non-compete agreement. Other
income in the first six months of 2003 consists of income ($8.3
million) related to a credit for advertising issued by the
Company, which was not used in the allotted time by the
advertiser, and income ($2.5 million) related to a non-compete
agreement. Other income in the first six months of 2002 consists
of income ($2.5 million) related to a non-compete agreement.
(c) Intersegment eliminations primarily include license fees between
NYTD and other segments.
(d) Average net paid circulation is provided following the guidelines
of the Audit Bureau of Circulations, an independent agency that
audits the circulation of most U.S. newspapers and magazines.
Reconciliation of EBITDA to Net Income
EBITDA, which is reconciled to net income below, is defined as
earnings before interest, taxes, depreciation and amortization and
other non-operating items. For comparability, EBITDA in the prior
year has been restated to conform with the 2003 presentation. The
EBITDA presented may not be comparable to similarly titled
measures reported by other companies. The Company believes that
EBITDA, while providing useful information, should not be
considered in isolation or as an alternative to other financial
measures determined under GAAP.
Second Quarter Six Months
----------------- -----------------
(In millions) (In millions)
----------------- -----------------
2003 2002 2003 2002
----------------- -----------------
EBITDA $166.4 $177.5 $320.0 $314.9
Depreciation and amortization (35.8) (38.1) (73.3) (76.8)
Interest expense - net (11.5) (11.6) (23.3) (22.2)
Other income 1.3 1.3 10.8 2.5
Income taxes (47.6) (50.3) (92.5) (85.2)
-------- -------- -------- --------
Net income $ 72.8 $ 78.8 $141.7 $133.2
======== ======== ======== ========
SOURCE: The New York Times Company
The New York Times Company Catherine J. Mathis, 212-556-1981 E-mail: mathis@nytimes.com This press release can be downloaded from www.nytco.com
Including the results of the International Herald Tribune (IHT), which was acquired by the Company on January 1, 2003, advertising revenue for the Newspaper Group rose 6.6% for the month.
Advertising results for June were as follows:
-- The New York Times
Advertising revenue for The New York Times, excluding the IHT, increased 3.5% for June 2003 compared with June 2002. National advertising revenue rose on strength in transportation and telecommunications advertising. Retail advertising was on a par with last year as growth in department store and home manufacturer store advertising offset softness in the fine arts and mass market/chain store categories. Classified advertising revenue decreased due to weakness in help wanted, which offset growth in automotive and real estate advertising.
-- New England Newspaper Group
Advertising revenue for the New England Newspaper Group increased 8.9% for June 2003 compared with June 2002. National advertising revenue was unusually strong with increases in most major categories including travel, telecommunications, technology, entertainment and national automotive advertising. Retail advertising revenue increased because of strength in sporting goods and home-related store advertising. Preprint revenue rose due to increased volume in retail preprints. Classified advertising revenue increased as gains in real estate offset continued softness in the help-wanted category.
-- Regional Newspaper Group
Advertising revenue for the Regional Newspaper Group increased 2.1% for June 2003 compared with June 2002. National advertising revenue increased as a result of additional telecommunications and national automotive advertising. Preprint revenue rose on growth in retail preprints in the drug store, home improvement, department store and discount store categories, and national preprints. Retail advertising revenue declined in large part due to softness in department store, telecommunications and food advertising at the Group's Alabama and California newspapers. Classified advertising revenue decreased as growth in real estate advertising was offset by weakness in automotive and higher rate help-wanted advertising.
The New York Times Company (NYSE: NYT), a leading media company with 2002 revenues of $3.1 billion, includes The New York Times, the International Herald Tribune, The Boston Globe, 16 other newspapers, eight network-affiliated television stations, two New York City radio stations and more than 40 Web sites, including NYTimes.com and Boston.com. For the third consecutive year, the Company was ranked No. 1 in the publishing industry in Fortune's 2002 list of America's Most Admired Companies. In 2003 the Company was named by Fortune as one of the 100 Best Companies to Work For. The Company's core purpose is to enhance society by creating, collecting and distributing high-quality news, information and entertainment.
Attachments: June 2003 Advertising Revenue
June 2003 Advertising Volume
THE NEW YORK TIMES COMPANY
2003 ADVERTISING REVENUE (a)
JUNE AND YEAR TO DATE
---------------------------------------------------------------------
Newspaper Group
Total Advertising Revenue
($ 000's)
June Year to Date
----------------------------------------------------
% %
------ ------
2003 2002 Change 2003 2002 Change
--------- --------- ------ -------- --------- ------
The New York
Times $84,535 $81,668 +3.5 $550,341 $535,807 +2.7
New England
Newspapers(b) 37,228 34,184 +8.9 220,295 216,629 +1.7
Regional
Newspapers 24,464 23,972 +2.1 163,645 160,754 +1.8
--------- --------- --------- ---------
Sub-Total $146,228 $139,824 +4.6 $934,281 $913,190 +2.3
--------- --------- --------- ---------
International
Herald Tribune(c) 2,780 N/A N/A 15,824 N/A N/A
Total Newspaper
Group $149,007 $139,824 +6.6 $950,105 $913,190 +4.0
========= ========= ========= =========
---------------------------------------------------------------------
(a) Numbers may not add due to rounding.
(b) The Boston Globe and the Worcester Telegram & Gazette.
(c) On January 1, 2003, The Times Company, which had owned 50% of
the IHT, became its sole owner. Accordingly, advertising
revenue of the IHT is included in the results of the Newspaper
Group. Based on full-year 2002 unaudited financial statements,
IHT total revenues were approximately $80 million, about half
of which were advertising revenue.
THE NEW YORK TIMES COMPANY
2003 ADVERTISING REVENUE (a)
SECOND QUARTER
---------------------------------------------------------------------
Newspaper Group
Total Advertising Revenue
($ 000's)
Second Quarter
--------------------------
%
------
2003 2002 Change
--------- --------- ------
The New York Times $273,604 $269,773 +1.4
New England Newspapers(b) 116,013 113,052 +2.6
Regional Newspapers 82,656 81,649 +1.2
--------- ---------
Sub-Total $472,273 $464,474 +1.7
--------- ---------
International Herald Tribune(c) 7,611 N/A N/A
Total Newspaper Group $479,884 $464,474 +3.3
========= =========
---------------------------------------------------------------------
(a) Numbers may not add due to rounding.
(b) The Boston Globe and the Worcester Telegram & Gazette.
(c) On January 1, 2003, The Times Company, which had owned 50% of
the IHT, became its sole owner. Accordingly, advertising
revenue of the IHT is included in the results of the Newspaper
Group. Based on full-year 2002 unaudited financial statements,
IHT total revenues were approximately $80 million, about half
of which were advertising revenue.
THE NEW YORK TIMES COMPANY
2003 ADVERTISING VOLUME(1)
(Inches in thousands, Preprints in thousands of copies)
JUNE AND YEAR TO DATE
---------------------------------------------------------------------
The New York Times(2)
June Year to Date
---------------------------------------------------------------------
2003 2002 % Change 2003 2002 % Change
--------------------------------------------------
Retail 27.9 30.4 -8.3 187.0 200.5 -6.7
National 97.3 101.7 -4.4 651.9 663.9 -1.8
Classified 57.2 59.0 -3.0 333.1 359.9 -7.4
-------- ------- ------- --------
Total ROP 182.4 191.1 -4.6 1,172.0 1,224.3 -4.3
-------- ------- ------- --------
Part Run/Zoned 64.5 63.0 +2.4 421.7 447.7 -5.8
-------- ------- ------- --------
Total 246.9 254.1 -2.8 1,593.8 1,672.0 -4.7
======== ======= ======= ========
Preprints 34,147 38,638 -11.6 241,007 241,450 -0.2
---------------------------------------------------------------------
---------------------------------------------------------------------
New England Newspaper Group(3)
June Year to Date
---------------------------------------------------------------------
2003 2002 % Change 2003 2002 % Change
--------------------------------------------------
Retail 59.6 64.7 -7.7 370.9 396.2 -6.4
National 64.7 60.7 +6.6 374.4 402.8 -7.1
Classified 126.4 129.6 -2.5 787.9 806.4 -2.3
-------- ------- ------- --------
Total ROP 250.7 255.0 -1.7 1,533.2 1,605.4 -4.5
-------- ------- ------- --------
Part Run/Zoned 106.3 85.3 +24.7 630.1 501.2 +25.7
-------- ------- ------- --------
Total 357.0 340.3 +4.9 2,163.3 2,106.6 +2.7
======== ======= ======= ========
Preprints 76,448 75,486 +1.3 506,407 461,558 +9.7
---------------------------------------------------------------------
---------------------------------------------------------------------
Regional Newspaper Group
June Year to Date
---------------------------------------------------------------------
2003 2002 % Change 2003 2002 % Change
--------------------------------------------------
Retail 400.6 419.0 -4.4 2,653.6 2,770.1 -4.2
National 25.1 20.2 +24.2 160.8 114.8 +40.0
Classified 571.4 565.8 +1.0 3,638.1 3,544.2 +2.6
Legal 23.5 23.8 -1.3 223.3 244.2 -8.6
------- -------- ------- --------
Total 1,020.6 1,028.8 -0.8 6,675.8 6,673.3 0.0
======= ======== ======= ========
Preprints 82,000 78,841 +4.0 590,532 537,355 +9.9
---------------------------------------------------------------------
International Herald Tribune (IHT) (4): For June, linage was 9,181
inches and for the YTD, linage was 54,776 inches.
THE NEW YORK TIMES COMPANY
2003 ADVERTISING VOLUME(1)
(Inches in thousands, Preprints in thousands of copies)
SECOND QUARTER
----------------------------------------------------------------------
The New York Times(2)
Second Quarter
----------------------------------------------------------------------
2003 2002 % Change
-------------------------
Retail 99.4 107.6 -7.7
National 316.4 330.7 -4.3
Classified 173.1 185.8 -6.8
-------- -------
Total ROP 588.9 624.1 -5.6
-------- -------
Part Run/Zoned 210.5 218.2 -3.5
-------- -------
Total 799.4 842.4 -5.1
======== =======
Preprints 121,625 124,583 -2.4
---------------------------------------------------------------------
---------------------------------------------------------------------
New England Newspaper Group(3)
Second Quarter
---------------------------------------------------------------------
2003 2002 % Change
-------------------------
Retail 199.3 214.4 -7.0
National 194.8 198.7 -2.0
Classified 400.3 419.8 -4.7
-------- -------
Total ROP 794.4 832.9 -4.6
-------- -------
Part Run/Zoned 350.0 282.8 +23.8
------- --------
Total 1,144.4 1,115.7 +2.6
======= ========
Preprints 264,125 254,813 +3.7
---------------------------------------------------------------------
---------------------------------------------------------------------
Regional Newspaper Group
Second Quarter
---------------------------------------------------------------------
2003 2002 % Change
-------------------------
Retail 1,328.5 1,393.2 -4.6
National 84.0 60.3 +39.4
Classified 1,853.8 1,847.0 +0.4
Legal 150.7 167.2 -9.9
------- --------
Total 3,417.0 3,467.7 -1.5
======= ========
Preprints 292,377 270,797 +8.0
---------------------------------------------------------------------
International Herald Tribune (IHT) (4): For the second quarter, linage
was 26,523 inches.
Footnotes:
(1) Advertising volume is based on preliminary internal data,
which may be updated in subsequent reports and may not be
indicative of advertising revenue or operating profit. Numbers
may not add due to rounding.
(2) The New York Times sells advertising by category. It defines
Retail, National and Classified as follows:
Retail - Coupon Advertising, Department Stores,
Fashion/Jewelry Stores, Fine Arts, Home Furnishings
Stores, Mass Market Stores and Restaurants
National - Advocacy, Alcoholic Beverages, American
Fashion, Banking, Books, Corporate, Cosmetics, Direct
Response, Education, Entertainment, Financial,
Healthcare/Pharmaceuticals, Home Furnishing Manufacturers,
Hotels/Resorts, International Country Advertorial,
International Fashion, Live Entertainment, Media, Packaged
Goods, Technology Products, Telecommunications and
Transportation/Travel
Classified - Automotive, Help Wanted, Real Estate and
General
Zoned - The New York Times also offers advertisers multiple
zoned buying options primarily in its New York metropolitan
market. This includes Retail, National or Classified
advertising that is purchased by zip code or by a defined
geographic area (Connecticut/Westchester, Long Island,
Manhattan or New Jersey).
(3) The Boston Globe and the Worcester Telegram & Gazette.
(4) On January 1, 2003, The New York Times Company, which had
owned 50% of the IHT, became its sole owner. Accordingly,
advertising revenue of the IHT is included in the results of
the Newspaper Group. Based on full-year 2002 unaudited
financial statements, IHT total revenues were approximately
$80 million, about half of which were advertising revenue.
This press release can be downloaded from www.nytco.com
SOURCE: The New York Times Company
The New York Times Company
Catherine J. Mathis, 212-556-1981
E-mail: mathis@nytimes.com
 |
 Schadenfreude  |
God knows what these jerks charge outside the city.
Yeah, it can actually. With the economy improving over last year, more companies will be placing ads. The Times is the only major broadsheet in NYC, so you have little choice but to advertise with them if you want to reach those demographics.
The Sunday paper is now $6.75 in some parts of the country, and that's for the crappy National Edition, which is barely half as thick as the real Late Edition.
--------------------------------------------
Second Quarter 2003
--------------------------------------------
Weekday/ % Change Sunday % Change
Daily vs. vs.
2002 2002
--------------------------------------------
Average Net Paid
Circulation (d)
The New York Times 1,087.9 -3.6% 1,628.5 -3.1%
--------------------------------------------
Six Months Ended June 29, 2003
--------------------------------------------
Weekday/ % Change Sunday % Change
Daily vs. vs.
2002 2002
--------------------------------------------
Average Net Paid
Circulation (d)
The New York Times 1,106.2 -3.5% 1,650.3 -2.7%
Not quite, since it's versus same quarter 2002.
Hey, if the NYT is anything, it is "trendy." Liberals (puke) are always "up-to-the minute."
It just wouldn't do for the NYT to appear out of step with its palsie-walsies at all those A-list Hamptons parties. LOL.
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