• by Paul Gough , March 16, 2004

The New York Times Co. turned in a weaker-than-expected February, with increases in ad revenues at the digital and broadcast units unable to reverse a slide led by drops at the flagship newspaper and the Boston Globe.

Total ad revenues dropped 0.3 percent. Ad revenues dropped 2.7 percent at the New York Times and International Herald Tribune, with declines in entertainment and national technology advertising, flat classified revenue, and growth in retail. Sales fell 1.5 percent at the Boston Globe and the Worcester Telegram & Gazette, which saw losses in retail advertising. The regional newspaper group's ad revenues increased 1.7 percent, with national and classified up and retail down.

Display ads at nytimes.com and boston.com lifted the company's digital unit, whose advertising sales rose 36.9 percent. Political advertising boosted the TV unit, whose ad revenues rose 5.2 percent.

The New York Times Co. said its first-quarter revenues would be "roughly on par" with the first quarter of 2003. Earnings per share would be between 33 cents and 36 cents, compared to a Wall Street consensus of about 44 cents. Chief Financial Officer Leonard Forman said in a prepared statement that the company expected that advertising revenues would improve during the rest of the year.

"We are encouraged that our February help-wanted advertising revenues grew 7.7 percent, reflecting gains at each of our three newspaper groups for the first time since September 2000," Forman said.

Yet analysts didn't look as favorably on the report.

"NYT is a victim of its geography, with the Boston and New York City markets lagging the rest of the nation in terms of the pace of the economic recovery," said Peter P. Appert, an analyst with Goldman Sachs. He said that the company's results are weaker than others in the sector. "Nevertheless, the company's results will weigh on the entire group," Appert said.

Another newspaper publisher, St. Louis-based Pulitzer Inc., said Tuesday that it would be "challenging" for it to reach its earnings targets because of the weak retail environment.

"Unanticipated softness from major retail advertisers, particularly in St. Louis, and costs related to the start-up of the new direct mail business in St. Louis, principally in the first and second quarters, make achieving this level of base earnings more challenging," the company said in a prepared statement.

Yet on the positive side, Gannett Co. Inc.'s February revenues rose 6.7 percent, with newspaper advertising revenues up 9 percent; Pulitzer's February revenue rose 4.6 percent compared to a year ago, including a 2 percent gain in St. Louis and an 11.6 percent rise at PNI Group. Media General, another newspaper and television company, said its revenue rose 3.2 percent in the month. Publishing revenues rose because of stronger classifieds, the company said.