NEW YORK--(BUSINESS WIRE)--June 18, 2003--The New York Times
Company announced today that advertising revenue for the Company's
Newspaper Group in May 2003 increased 1.8% compared with the results
for the same month last year.
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 3.7% for the month.
"Our advertising results in May, as well as results thus far in
June, reflect a modest improvement from the year-over-year declines we
experienced during March and April, which were caused primarily by the
war in Iraq," said Len Forman, senior vice president and chief
financial officer. "Other factors that are constraining our
second-quarter advertising growth include softer sales in the hotel
and transportation/travel category related to SARS and geopolitical
instability, a weak retail category, and the difficult job market,
which continues to negatively affect recruitment advertising. At the
same time, we are experiencing higher costs in the second quarter as a
result of war-related expenses, higher newsprint prices and increased
benefit and compensation expenses.
"Because of these factors, we anticipate that second-quarter
earnings per share will be in the range of $.43 to $.47 based on
generally accepted accounting principles (GAAP). Looking ahead, our
performance for the balance of the year will depend primarily on the
strength of the economic recovery, which in turn will influence the
health of the advertising market. We now expect 2003 earnings per
share to increase in the low- to mid-single digits."
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 4.5 to 5.5%
----------------------------------------------------------------------
Depreciation & Amortization $152 to $157 $152 to $157
million million
----------------------------------------------------------------------
Capital Expenditures (c) $210 to $240 $210 to $240
million million
----------------------------------------------------------------------
Income/(loss) from Joint Ventures A loss of $4 A loss of $7
million to to $11 million
breakeven
----------------------------------------------------------------------
Interest Expense $48 to $53 $45 to $49
million million
----------------------------------------------------------------------
Tax Rate 39.5% 39.5%
----------------------------------------------------------------------
Diluted Earnings Per Share Growth Mid-single digits Low- to
to low-double mid-single
digits digits
----------------------------------------------------------------------
(a) 2003 guidance excludes the IHT.
(b) Total Company expenses including the IHT are expected to
increase 7 to 8% 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.
Advertising results for May were as follows:
-- The New York Times
Advertising revenue for The New York Times, excluding the IHT,
increased 2.4% for May 2003 compared with May 2002. National
advertising revenue rose as strength in telecommunications, technology
products, financial services, banking and healthcare/pharmaceuticals
offset weakness in the transportation/travel and hotel advertising
categories. Retail advertising decreased as strength in
fashion/jewelry store advertising was offset by softness in home
furnishing store and department store advertising. Classified
advertising decreased due to weakness in the help-wanted category,
which more than offset continued strength in residential real estate
advertising.
-- New England Newspaper Group
Advertising revenue for the New England Newspaper Group increased
1.4% for May 2003 compared with May 2002. National advertising revenue
increased due to growth in technology, telecommunications and bank
advertising, which more than offset softness in the live entertainment
and travel-related categories. Retail advertising declined because of
weakness in department store, electronics/appliance and home-related
advertising. Preprint revenue rose due to increased volume in
department store and home-related advertising. Classified advertising
declined as significant gains in residential real estate were more
than offset by continued softness in the help-wanted category.
Part-run advertising increased on the continued strength of the
Globe's zoned initiatives.
-- Regional Newspaper Group
Advertising revenue for the Regional Newspaper Group was on a par
with the results for the same month last year. National advertising
revenue increased as a result of additional telecommunications,
financial and national automotive advertising. Preprint revenue rose
on growth in retail from home improvement and drug stores, and
national preprints. Retail advertising declined due to softness in a
number of categories including department stores, financial,
furniture, home improvement, medical and electronics. Classified
advertising revenue decreased as growth in real estate advertising was
offset by decreases in automotive and higher rate help-wanted
advertising.
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 $3.1 billion, includes The New York Times, the
International Herald Tribune, The Boston Globe, 16 other newspapers,
eight network-affiliated television stations, two New York City radio
stations and more than 40 Web sites, including NYTimes.com and
Boston.com. For the third consecutive year, the Company was ranked No.
1 in the publishing industry in Fortune's 2002 list of America's Most
Admired Companies. In 2003 the Company was named by Fortune as one of
the 100 Best Companies to Work For. The Company's core purpose is to
enhance society by creating, collecting and distributing high-quality
news, information and entertainment.
THE NEW YORK TIMES COMPANY
2003 ADVERTISING REVENUE (a)
MAY AND YEAR TO DATE
----------------------------------------------------------------------
Newspaper Group
Total Advertising Revenue
($ 000's)
May Year to Date
-------------------------- -------------------------
% %
2003 2002 Change 2003 2002 Change
---------- ------- ------- -------- --------- ------
The New York Times $84,373 $82,404 +2.4 $465,806 $454,138 +2.6
New England
Newspapers (b) 35,302 34,806 +1.4 183,067 182,444 +0.3
Regional
Newspapers 25,614 25,473 +0.6 139,180 136,782 +1.8
-------- -------- --------- --------
Sub-Total $145,289 $142,682 +1.8 $788,054 $773,364 +1.9
-------- -------- --------- --------
International
Herald Tribune(c) 2,621 N/A N/A 13,044 N/A N/A
Total Newspaper
Group $147,911 $142,682 +3.7 $801,098 $773,364 +3.6
========= ======== ======== ========
----------------------------------------------------------------------
(a) Numbers may not add due to rounding.
(b) The New England Newspaper Group includes The Boston Globe and the
Worcester Telegram & Gazette.
(c) On January 1, 2003, The New York Times Company, which had owned
fifty percent 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)
MAY AND YEAR TO DATE
----------------------------------------------------------------------
The New York Times(2)
May Year to Date
-------------------------------------------- -------------------------
% %
2003 2002 Change 2003 2002 Change
------ ------ ------ -------- ------- ------
Retail 32.3 36.5 -11.5 159.1 170.0 -6.4
National 97.7 99.6 -1.9 554.6 562.2 -1.3
Classified 51.7 53.8 -4.0 275.9 300.9 -8.3
------ ----- ------- -------
Total ROP 181.7 190.0 -4.4 989.7 1,033.1 -4.2
------ ----- ------- -------
Part Run/Zoned 64.9 66.4 -2.2 357.2 384.7 -7.2
------ ------ ------- -------
Total 246.6 256.4 -3.8 1,346.9 1,417.9 -5.0
====== ======= ======= =======
Preprints 33,826 37,080 -8.8 206,860 202,812 +2.0
----------------------------------------------------------------------
New England Newspaper Group(3)
May Year to Date
------------------------------------------- --------------------------
% %
2003 2002 Change 2003 2002 Change
------ ------ ------ ------- -------- ------
Retail 61.4 69.2 -11.3 311.2 331.5 -6.1
National 60.2 60.8 -0.9 309.7 342.1 -9.5
Classified 122.7 128.9 -4.9 661.6 676.8 -2.3
------ ------ ------- -------
Total ROP 244.3 258.9 -5.6 1,282.5 1,350.5 -5.0
------ ------ ------- -------
Part Run/Zoned 113.0 81.2 +39.1 523.8 415.9 +26.0
------ ------ ------- -------
Total 357.3 340.1 +5.1 1,806.3 1,766.3 +2.3
====== ====== ======= ========
Preprints 81,041 78,433 +3.3 429,959 386,072 +11.4
----------------------------------------------------------------------
Regional Newspaper Group
May Year to Date
-------------------------------------------- -------------------------
% %
2003 2002 Change 2003 2002 Change
------- ------- -------- -------- --------- ------
Retail 409.5 436.6 -6.2 2,253.0 2,351.1 -4.2
National 27.0 18.5 +46.1 135.7 94.6 +43.4
Classified 572.6 586.6 -2.4 3,066.7 2,978.4 +3.0
Legal 91.0 112.8 -19.3 199.8 220.4 -9.3
------- ------- ------- -------
Total 1,100.1 1,154.5 -4.7 5,655.1 5,644.5 +0.2
======= ======= ======= =======
Preprints 87,606 82,676 +6.0 508,532 458,514 +10.9
----------------------------------------------------------------------
International Herald Tribune (IHT)(4): May linage for the IHT was
9,078 inches. May YTD linage for the IHT was 45,595 inches.
Notes:
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 newspaper 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, Credit Cards, 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 newspaper also offers advertisers
multiple zoned buying options primarily in its New York metropolitan
market. When Retail, National or Classified advertising is purchased
by zip code or by a defined geographic area (such as
Connecticut/Westchester, Long Island, Manhattan or New Jersey), it is
classified as Zoned.
3. The New England Newspaper Group includes The Boston Globe and
the Worcester Telegram & Gazette. In 2002, the Globe sold incremental
national advertising into the Telegram & Gazette.
4. On January 1, 2003, The New York Times Company, which had owned
fifty percent 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
CONTACT: The New York Times Company
Catherine J. Mathis, 212/556-1981
E-mail: mathis@nytimes.com
SOURCE: The New York Times Company
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