Exhibit 99.2
Press Release
Contacts: | Catherine J. Mathis, 212-556-1981; E-mail: mathis@nytimes.com |
| Paula Schwartz, 212-556-5224; E-mail: schwap@nytimes.com |
| This press release can be downloaded from www.nytco.com |
THE NEW YORK TIMES COMPANY REPORTS
JUNE REVENUES
NEW YORK, July 21, 2005 – The New York Times Company announced today that in June 2005 advertising revenues for the Company’s business units increased 3.6% and total Company revenues increased 2.5% compared with the same month in 2004. Excluding About.com, which was acquired in March 2005, advertising revenues increased 1.1% and total Company revenues increased 0.8%.
“To date in July, the trend in advertising revenue growth for the News Media Group is similar to that of the second quarter,” said Janet L. Robinson, president and CEO. “Performance varies across the News Media Group, with properties in smaller markets continuing to show better results than those in large markets. As has been the case throughout the year, there are considerable differences among categories of print advertising. Online advertising remains strong and About.com continues to see very robust growth. Our Broadcast Media Group still faces challenging comparisons to last year when it benefited from political spending.”
Today the Times Company is also announcing its second-quarter results and will be hosting a conference call to discuss them with the financial community.
Advertising results for June were as follows:
The New York Times Media Group – Advertising revenues for The New York Times Media Group increased 1.4% for June 2005 compared with June 2004. National advertising revenues increased as strength in national automotive, studio entertainment, banking and books advertising offset weakness in telecommunications, corporate, media, transportation/travel and pharmaceutical advertising. Retail advertising revenues rose due to strong growth in the fashion/jewelry store and department store categories. Classified advertising revenues grew as gains in real estate and other classified advertising offset softness in help-wanted and automotive advertising.
New England Media Group – Advertising revenues for the New England Media Group decreased 1.1% for June 2005 compared with June 2004. National advertising revenues increased as growth in national automotive and banking advertising offset weakness in financial services and transportation/travel advertising. Retail advertising revenues decreased as weakness in home furnishing and apparel/footwear advertising offset strength in electronics/appliance and computer/office supply advertising. Classified advertising revenues were lower as gains in real estate advertising were offset by losses in the automotive and help-wanted categories.
Regional Media Group – Advertising revenues for the Regional Media Group grew 4.5% for June 2005 compared with June 2004. Excluding the North Bay Business Journal, which was purchased on February 1, 2005, advertising revenues increased 4.2%. Retail advertising revenues rose as strength in the services and banking/financial ad categories offset weakness in telecommunications, restaurant and department store advertising. Classified advertising revenues increased as strong growth in help-wanted advertising offset softness in automotive and real estate advertising.
The Company’s Internet ad revenues, which are included in the figures for the three media groups above, increased 27.7% for June 2005 compared with June 2004 due to strong growth in display advertising and in all classified advertising categories. Year-to-date, Internet ad revenues grew 28.5%.
Circulation revenues decreased 1.5% for June 2005 compared with June 2004. Circulation revenues rose at the Regional Media Group, were flat at The New York Times Media Group, and declined at the New England Media Group.
Broadcast Media Group – Advertising revenues for June 2005 for the Broadcast Media Group decreased 1.8%, due to lower political advertising revenue.
About.com – Strong advertising revenue growth in June 2005 resulted from the telecommunications, travel and technology categories. Gains were also achieved in the automotive, packaged goods and financial ad categories.
Advertising revenues for About.com, which was acquired in March 2005, increased approximately 47% in June, 39% in the second quarter and 28% year to date. The results prior to the date of acquisition are based on the accounting records of the previous owner and followed a calendar month, while the results after the acquisition date are based on The Times Company’s fiscal months.
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 year ended December 26, 2004. 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 2004 revenues of $3.3 billion, includes The New York Times, the International Herald Tribune, The Boston Globe, 16 other newspapers, eight network-affiliated television stations, two New York City radio stations and more than 40 Web sites, including NYTimes.com, Boston.com and About.com. For the fifth consecutive year, the Company was ranked No. 1 in the publishing industry in Fortune’s 2005 list of America’s Most Admired Companies. The Company’s core purpose is to enhance society by creating, collecting and distributing high-quality news, information and entertainment.
# # #
THE NEW YORK TIMES COMPANY
2005 TOTAL COMPANY REVENUES (a)
JUNE AND YEAR TO DATE
Total Company Revenues
($ 000’s)
|
| June |
| Year to Date |
| ||||||||||||
|
| 2005 |
| 2004 |
| % |
| 2005 |
| 2004 |
| % |
| ||||
Advertising Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
News Media |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
National (b) |
| $ | 68,187 |
| $ | 66,839 |
| +2.0 |
| $ | 456,347 |
| $ | 460,376 |
| -0.9 |
|
Retail (c) |
| 36,656 |
| 36,324 |
| +0.9 |
| 235,220 |
| 223,851 |
| +5.1 |
| ||||
Classified (d) |
| 50,135 |
| 50,369 |
| -0.5 |
| 304,697 |
| 301,813 |
| +1.0 |
| ||||
Other Ad Revenue (e) |
| 4,798 |
| 4,182 |
| +14.7 |
| 30,323 |
| 26,947 |
| +12.5 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Sub-Total |
| 159,775 |
| 157,715 |
| +1.3 |
| 1,026,587 |
| 1,012,987 |
| +1.3 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Broadcast Media |
| 10,560 |
| 10,758 |
| -1.8 |
| 66,958 |
| 67,551 |
| -0.9 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Sub-Total |
| 170,335 |
| 168,473 |
| +1.1 |
| 1,093,545 |
| 1,080,538 |
| +1.2 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
About.com (f) |
| 4,210 |
| — |
| N/A |
| 12,597 |
| — |
| N/A |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total Advertising Revenues |
| 174,546 |
| 168,473 |
| +3.6 |
| 1,106,142 |
| 1,080,538 |
| +2.4 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Circulation Revenues |
| 66,868 |
| 67,908 |
| -1.5 |
| 438,099 |
| 440,399 |
| -0.5 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Other Revenues (g) |
| 18,510 |
| 17,170 |
| +7.8 |
| 106,411 |
| 104,938 |
| +1.4 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total Company Revenues |
| $ | 259,924 |
| $ | 253,551 |
| +2.5 |
| $ | 1,650,652 |
| $ | 1,625,875 |
| +1.5 |
|
(a) Numbers may not add due to rounding. Historical information for 2005, as well as for 2004 and 2003 reclassified to conform to the 2005 presentation, is available in the Investors section at www.nytco.com.
The breakdown for national, retail and classified ad revenues for April and May was incorrect. A spreadsheet with the correct breakdown is available in the Investors section at www.nytco.com.
(b) Includes all ad revenue from the International Herald Tribune.
(c) Includes all preprint revenues.
(d) Includes legal advertising.
(e) Primarily includes ad revenue from the Regional Media Group’s magazines.
(f) Acquired by The New York Times Company on March 18, 2005. Advertising revenues for About.com increased approximately 47% in June, 39% in the second quarter and 28% year to date. The results prior to the date of acquisition are based on the accounting records of the previous owner and followed a calendar month, while the results after the acquisition date are based on The Times Company’s fiscal months.
(g) Primarily includes revenues from wholesale delivery operations, news services, direct marketing, digital archives and commercial printing.
3
THE NEW YORK TIMES COMPANY
2005 TOTAL COMPANY REVENUES (a)
SECOND QUARTER
Total Company Revenues
($ 000’s)
|
| Second Quarter |
| ||||||
|
| 2005 |
| 2004 |
| % |
| ||
Advertising Revenues |
|
|
|
|
|
|
| ||
News Media |
|
|
|
|
|
|
| ||
National (b) |
| $ | 228,305 |
| $ | 228,482 |
| -0.1 |
|
Retail (c) |
| 121,894 |
| 116,487 |
| +4.6 |
| ||
Classified (d) |
| 158,511 |
| 155,129 |
| +2.2 |
| ||
Other Ad Revenue (e) |
| 15,751 |
| 14,436 |
| +9.1 |
| ||
Sub-Total |
| 524,460 |
| 514,534 |
| +1.9 |
| ||
|
|
|
|
|
|
|
| ||
Broadcast Media |
| 36,355 |
| 36,977 |
| -1.7 |
| ||
Sub-Total |
| 560,815 |
| 551,511 |
| +1.7 |
| ||
|
|
|
|
|
|
|
| ||
About.com (f) |
| 11,547 |
| — |
| N/A |
| ||
|
|
|
|
|
|
|
| ||
Total Advertising Revenues |
| 572,363 |
| 551,511 |
| +3.8 |
| ||
|
|
|
|
|
|
|
| ||
Circulation Revenues |
| 218,482 |
| 220,156 |
| -0.8 |
| ||
Other Revenues (g) |
| 54,224 |
| 52,264 |
| +3.8 |
| ||
|
|
|
|
|
|
|
| ||
Total Company Revenues |
| $ | 845,069 |
| $ | 823,931 |
| +2.6 |
|
(a) Numbers may not add due to rounding. Historical information for 2005, as well as for 2004 and 2003 reclassified to conform to the 2005 presentation, is available in the Investors section at www.nytco.com.
The breakdown for national, retail and classified ad revenues for April and May was incorrect. A spreadsheet with the correct breakdown is available in the Investors section at www.nytco.com.
(b) Includes all ad revenue from the International Herald Tribune.
(c) Includes all preprint revenues.
(d) Includes legal advertising.
(e) Primarily includes ad revenue from the Regional Media Group’s magazines.
(f) Acquired by The New York Times Company on March 18, 2005. Advertising revenues for About.com increased approximately 47% in June, 39% in the second quarter and 28% year to date. The results prior to the date of acquisition are based on the accounting records of the previous owner and followed a calendar month, while the results after the acquisition date are based on The Times Company’s fiscal months.
(g) Primarily includes revenues from wholesale delivery operations, news services, direct marketing, digital archives and commercial printing.
4
THE NEW YORK TIMES COMPANY
2005 ADVERTISING REVENUES (a)
JUNE AND YEAR TO DATE
Total Company Advertising Revenues
($ 000’s)
|
| June |
| Year to Date |
| ||||||||||||
|
| 2005 |
| 2004 |
| % |
| 2005 |
| 2004 |
| % |
| ||||
News Media |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
New York Times Media Group (b) |
| $ | 94,503 |
| $ | 93,213 |
| +1.4 |
| $ | 613,228 |
| $ | 604,519 |
| +1.4 |
|
New England Media Group (c) |
| 37,661 |
| 38,089 |
| -1.1 |
| 230,586 |
| 236,428 |
| -2.5 |
| ||||
Regional Media Group (d) |
| 27,611 |
| 26,413 |
| +4.5 |
| 182,773 |
| 172,041 |
| +6.2 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Sub-Total |
| 159,775 |
| 157,715 |
| +1.3 |
| 1,026,587 |
| 1,012,987 |
| +1.3 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Broadcast Media |
| 10,560 |
| 10,758 |
| -1.8 |
| 66,958 |
| 67,551 |
| -0.9 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Sub-Total |
| 170,335 |
| 168,473 |
| +1.1 |
| 1,093,545 |
| 1,080,538 |
| +1.2 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
About.com (e) |
| 4,210 |
| — |
| N/A |
| 12,597 |
| — |
| N/A |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total Company Ad Revenues |
| $ | 174,546 |
| $ | 168,473 |
| +3.6 |
| $ | 1,106,142 |
| $ | 1,080,538 |
| +2.4 |
|
(a) Numbers may not add due to rounding. Historical information for 2005, as well as for 2004 and 2003 reclassified to conform to the 2005 presentation, is available in the Investors section at www.nytco.com.
(b) The New York Times, NYTimes.com, International Herald Tribune and WQXR-FM.
(c) The Boston Globe, Boston.com and the Worcester Telegram & Gazette.
(d) Beginning in February 2005, includes the results of the North Bay Business Journal, purchased February 1, 2005. Excluding the North Bay Business Journal, advertising revenues were up 4.2% in June, 4.9% in the second quarter and 5.8% year to date.
(e) Acquired by The New York Times Company on March 18, 2005. Advertising revenues for About.com increased approximately 47% in June, 39% in the second quarter and 28% year to date. The results prior to the date of acquisition are based on the accounting records of the previous owner and followed a calendar month, while the results after the acquisition date are based on The Times Company’s fiscal months.
5
THE NEW YORK TIMES COMPANY
2005 ADVERTISING REVENUES (a)
SECOND QUARTER
Total Company Advertising Revenues
($ 000’s)
|
| Second Quarter |
| ||||||
|
| 2005 |
| 2004 |
| % |
| ||
News Media |
|
|
|
|
|
|
| ||
New York Times Media Group (b) |
| $ | 311,762 |
| $ | 305,401 |
| +2.1 |
|
New England Media Group (c) |
| 121,179 |
| 122,217 |
| -0.8 |
| ||
Regional Media Group (d) |
| 91,519 |
| 86,916 |
| +5.3 |
| ||
|
|
|
|
|
|
|
| ||
Sub-Total |
| 524,460 |
| 514,534 |
| +1.9 |
| ||
|
|
|
|
|
|
|
| ||
Broadcast Media |
| 36,355 |
| 36,977 |
| -1.7 |
| ||
|
|
|
|
|
|
|
| ||
Sub-Total |
| 560,815 |
| 551,511 |
| +1.7 |
| ||
|
|
|
|
|
|
|
| ||
About.com (e) |
| 11,547 |
| — |
| N/A |
| ||
|
|
|
|
|
|
|
| ||
Total Company Ad Revenues |
| $ | 572,363 |
| $ | 551,511 |
| +3.8 |
|
(a) Numbers may not add due to rounding. Historical information for 2005, as well as for 2004 and 2003 reclassified to conform to the 2005 presentation, is available in the Investors section at www.nytco.com.
(b) The New York Times, NYTimes.com, International Herald Tribune and WQXR-FM.
(c) The Boston Globe, Boston.com and the Worcester Telegram & Gazette.
(d) Beginning in February 2005, includes the results of the North Bay Business Journal, purchased February 1, 2005. Excluding the North Bay Business Journal, advertising revenues were up 4.2% in June, 4.9% in the second quarter and 5.8% year to date.
(e) Acquired by The New York Times Company on March 18, 2005. Advertising revenues for About.com increased approximately 47% in June, 39% in the second quarter and 28% year to date. The results prior to the date of acquisition are based on the accounting records of the previous owner and followed a calendar month, while the results after the acquisition date are based on The Times Company’s fiscal months.
6
THE NEW YORK TIMES COMPANY
2005 NEWS MEDIA AD REVENUE GROWTH
BY CLASSIFIED CATEGORY
JUNE, SECOND QUARTER AND YEAR TO DATE
|
| % Change |
| % Change |
| % Change |
|
|
|
|
|
|
|
|
|
News Media |
|
|
|
|
|
|
|
Help-Wanted |
| +1.8 |
| +5.6 |
| +5.5 |
|
Real Estate |
| +3.2 |
| +8.5 |
| +3.9 |
|
Automotive |
| -10.4 |
| -11.1 |
| -9.8 |
|
7
THE NEW YORK TIMES COMPANY
2005 PRINT ADVERTISING VOLUME (a)
(Inches in thousands, Preprints in thousands of copies)
JUNE AND YEAR TO DATE
|
| June |
| Year to Date |
| ||||||||
|
|
|
|
|
| % |
|
|
|
|
| % |
|
|
| 2005 |
| 2004 |
| Change |
| 2005 |
| 2004 |
| Change |
|
National (b) |
| 179.6 |
| 185.0 |
| -2.9 |
| 1,183.1 |
| 1,241.0 |
| -4.7 |
|
Retail |
| 481.1 |
| 489.9 |
| -1.8 |
| 3,173.3 |
| 3,139.3 |
| +1.1 |
|
Classified |
| 751.6 |
| 788.1 |
| -4.6 |
| 4,869.9 |
| 4,969.3 |
| -2.0 |
|
Total ROP |
| 1,412.3 |
| 1,463.0 |
| -3.5 |
| 9,226.3 |
| 9,349.6 |
| -1.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Part Run/ Zoned |
| 183.3 |
| 191.6 |
| -4.3 |
| 1,065.9 |
| 1,114.2 |
| -4.3 |
|
Total |
| 1,595.6 |
| 1,654.6 |
| -3.6 |
| 10,292.2 |
| 10,463.8 |
| -1.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preprints |
| 222,024 |
| 221,236 |
| +0.4 |
| 1,416,734 |
| 1,340,111 |
| +5.7 |
|
(a) 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.
(b) Includes all ad volume from the International Herald Tribune.
8
THE NEW YORK TIMES COMPANY
2005 PRINT ADVERTISING VOLUME (a)
(Inches in thousands, Preprints in thousands of copies)
SECOND QUARTER
|
| Second Quarter |
| ||||
|
|
|
|
|
| % |
|
|
| 2005 |
| 2004 |
| Change |
|
National (b) |
| 594.0 |
| 617.1 |
| -3.7 |
|
Retail |
| 1,604.6 |
| 1,596.8 |
| +0.5 |
|
Classified |
| 2,518.9 |
| 2,586.2 |
| -2.6 |
|
Total ROP |
| 4,717.5 |
| 4,800.1 |
| -1.7 |
|
|
|
|
|
|
|
|
|
Part Run/Zoned |
| 583.7 |
| 590.6 |
| -1.2 |
|
Total |
| 5,301.3 |
| 5,390.7 |
| -1.7 |
|
|
|
|
|
|
|
|
|
Preprints |
| 727,570 |
| 685,629 |
| +6.1 |
|
(a) 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.
(b) Includes all ad volume from the International Herald Tribune.
9