• by Erik Sass  @eriksass1, June 15, 2007

With the release of discouraging May results, the New York Times Company looks to be headed for another weak quarter. The news follows a first-quarter revenue decline of 3.4%, compared to the same period last year.

In May, overall revenues fell 5.8%, as total ad revenues fell 8.5% compared to the same month last year. The blows fell especially hard on the New York Times Media Group--including the flagship paper, with revenues slipping 9.1% on weakness in national and classified ads.

National advertising took hits in a variety of categories, including entertainment, transportation, technology, media and telecommunications. Those offset gains in financial services, hotel, alcoholic beverage and corporate advertising. Retail revenues in fashion, home furnishings, mass market and department stores all declined, too.

Ominously, May marks the first month when the NYT Media Group's advertising revenue suffered a bigger percentage decline than the company's troubled New England Media Group. The New England group's ad revenues fell 8.8% in May, again due to weakness in national, retail and classified ads.

Classified ads are hemorrhaging revenues on a year-over-year basis across different parts of the company, reflecting a broader decline in the newspaper industry. Total revenues from car, real estate and help-wanted ads fell 12.9% to $40.36 million, and for the year to date, they're down 11.7% to just under $230 million. Real estate leads the downward trend with a May decline of 21.4%; help-wanted and cars are falling neck-and-neck with 11.1% and 11% declines, respectively.

Indeed, the company's weak performance in April and May across a variety of categories suggests that the second quarter continues the first-quarter slump. In April, the company's total ad revenues fell 3.6%, compared to the same month in 2006.

With a May growth rate of 21.4% and an April growth rate of 15.6%, Internet ad revenue continues to be a relative bright spot for the company. But it's down from last year's growth rate of 26.9% in May 2006, compared to May 2005, and 25% in April 2006, compared to April 2005. Last year's total annual growth rate was 39%. It's also substantially lower than the 30% forecast for 2007 by NYTCO CEO Janet Robinson during the company's fourth-quarter/year-end presentation in March.