EXHIBIT 99.1
Contact: Roger May
(212) 416-2601
Jan Abernathy
(212) 416-2608
NEW YORK, N.Y. (January 20, 1997) -- Dow Jones & Company earnings
for the year ended December 31, 1996, were $189,969,000, or $1.96
a share, versus the $189,572,000, or $1.96 a share, earned in
1995.
Earnings in 1996 included a gain of $8.8 million, or nine
cents a share, from the sale of the company's minority interest in
Press-Enterprise Co.
Dow Jones separately announced today a multiyear investment
program to expand and revitalize Dow Jones Telerate that is
expected to total up to $650 million in new capital expenditures
and increased development and operating expenses over the next 36
to 48 months. The company estimates that after giving effect to
this investment program, Dow Jones' 1997 earnings will be between
$1.20 and $1.40 per share. Earnings in 1998 also will be affected
by the program. (See accompanying release for more information on
Dow Jones Telerate).
Operating income in 1996 rose 10.8%, to $336,980,000.
Revenue increased 8.7%, to $2.5 billion.
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In the fourth quarter, earnings were $59,643,000, or 62 cents
a share, compared with the $59,981,000, or 62 cents a share,
earned in the like 1995 quarter.
Operating income in the 1996 fourth quarter rose 25.6%, to
$113,664,000, while revenue rose 9.7%, to $671,250,000.
The business publishing segment, which includes the results
of the company's print publications, television operations and
Business Information Services group, posted 1996 operating income
of $159,418,000, an increase of nearly 70% from a year earlier.
Revenue increased 15.7%, to just over $1.2 billion. In the fourth
quarter of 1996, Wall Street Journal advertising linage rose
21.7%. For the year, linage was up 13.9%.
Operating income at Dow Jones' financial information services
segment, which includes the results of the Dow Jones Telerate and
Financial News Services groups, fell 20.9% in 1996, to
$155,848,000. Revenue advanced 1.9%, to $979,745,000. In the
fourth quarter, operating income declined 27.5% on flat revenue at
Dow Jones Telerate.
Ottaway Newspapers, Inc., the company's community newspaper
subsidiary, reported 1996 operating income of $43,766,000, an
increase of 32.7%. Revenue rose 5.4%, to $287,511,000.
Advertising linage at Ottaway's 19 daily newspapers rose 0.5% in
the fourth quarter and fell 1.2% in 1996.
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Dow Jones publishes The Wall Street Journal, Barron's
magazine and other periodicals, electronic business information
services and the Ottaway group of community newspapers.
Electronic information services include Dow Jones Telerate, a
provider of real-time financial information to the international
business community; Dow Jones News Service and other business
newswires; and the Business Information Services group, which
produces a variety of Internet publications, including The Wall
Street Journal Interactive Edition, and provides business
information to corporations and consumers by computer, telephone,
facsimile and radio. Dow Jones also produces business television
programming.
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DOW JONES & COMPANY, INC.
Consolidated Income Statements
For the Years ended December 31, 1996 and 1995
(in thousands, except per share amounts)
Percentage
Increase
1996 1995 (Decrease)
REVENUES:
Information services $1,125,625 $1,092,002 3.1%
Advertising 896,981 771,779 16.2
Circulation and other 458,986 419,980 9.3
Total revenues 2,481,592 2,283,761 8.7
EXPENSES:
News, operations and development 820,564 748,945 9.6
Selling, administrative and general 831,270 764,161 8.8
Newsprint 164,766 157,047 4.9
Second class postage
and carrier delivery 110,256 103,497 6.5
Depreciation and amortization 217,756 206,070 5.7
Operating expenses 2,144,612 1,979,720 8.3
Operating income 336,980 304,041 10.8
OTHER INCOME (DEDUCTIONS):
Investment income 4,249 5,379 (21.0)
Interest expense (18,755) (18,345) 2.2
Equity in (losses) earnings of
associated companies (5,408) 14,193 -
Other, net 14,194 17,632 (19.5)
Income before income taxes 331,260 322,900 2.6
Income taxes 147,728 139,878 5.6
Income before minority interests 183,532 183,022 0.3
Minority interests in losses 6,437 6,550 (1.7)
NET INCOME $ 189,969 $ 189,572 0.2
NET INCOME PER SHARE $1.96 $1.96
Average shares outstanding 96,703 96,907
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DOW JONES & COMPANY, INC.
Consolidated Income Statements
For the Quarters ended December 31, 1996 and 1995
(in thousands, except per share amounts)
Percentage
Increase
1996 1995 (Decrease)
REVENUES:
Information services $292,245 $282,704 3.4%
Advertising 262,287 219,392 19.6
Circulation and other 116,718 109,994 6.1
Total revenues 671,250 612,090 9.7
EXPENSES:
News, operations and development 217,251 201,437 7.9
Selling, administrative and general 217,972 198,321 9.9
Newsprint 37,408 46,522 (19.6)
Second class postage
and carrier delivery 29,541 27,363 8.0
Depreciation and amortization 55,414 47,977 15.5
Operating expenses 557,586 521,620 6.9
Operating income 113,664 90,470 25.6
OTHER INCOME (DEDUCTIONS):
Investment income 1,174 1,558 (24.6)
Interest expense (6,072) (4,365) 39.1
Equity in (losses) earnings of
associated companies (6,858) 4,637 -
Other, net 388 2,450 (84.2)
Income before income taxes 102,296 94,750 8.0
Income taxes 43,999 36,686 19.9
Income before minority interests 58,297 58,064 0.4
Minority interests in losses 1,346 1,917 (29.8)
NET INCOME $ 59,643 $ 59,981 (0.6)
NET INCOME PER SHARE $0.62 $0.62
Average shares outstanding 95,808 97,136
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DOW JONES & COMPANY, INC.
Segment Highlights
(in thousands)
Percentage
Increase
Years Ended Dec. 31: 1996 1995 (Decrease)
Revenues:
Business publishing $1,214,336 $1,049,462 15.7%
Financial information services 979,745 961,398 1.9
Community newspapers 287,511 272,901 5.4
Operating income:
Business publishing $ 159,418 $ 95,509 66.9%
Financial information services 155,848 197,015 (20.9)
Community newspapers 43,766 32,987 32.7
Percentage
Increase
Quarters Ended Dec. 31: 1996 1995 (Decrease)
Revenues:
Business publishing $ 341,524 $ 289,972 17.8%
Financial information services 253,299 248,971 1.7
Community newspapers 76,427 73,147 4.5
Operating income:
Business publishing $ 66,592 $ 36,042 84.8%
Financial information services 36,911 50,930 (27.5)
Community newspapers 15,655 10,158 54.1
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This press release contains forward-looking statements that
are subject to a number of risks and uncertainties. Actual results
and events could differ materially from those anticipated in the
forward-looking statements. The words "estimates," "intends,"
"will be," "plans," "expects," "likely" and similar expressions
identify forward-looking statements. Factors that might cause such
a difference include, but are not limited to, the Company's ability
to achieve and implement the planned enhancements of Dow Jones
Telerate's products and services on a timely and cost-effective
basis and customer acceptance of those products and services;
general economic conditions and business conditions (growth or
consolidation) in the financial services and banking industries,
and their impact on advertising sales and sales of the Company's
products and services; cost of newsprint; risks associated with the
launch of new television channels in the U.S. and abroad in
competitive markets; and such other risk factors as may have been
or may be included from time to time in the Company's SEC reports,
including the 8-K report filed today.
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