Robinson predicted the cover price-hike, to $1.25, and the 4% increase in home-delivery subscriptions would produce between $7 million and $8 million in added revenue for 2007, and $14 million to $16 million each year thereafter.
The move is a clear indication of growing pressure to raise revenues, with investors grumbling about falling ad dollars and stagnating share prices. In May, overall revenues fell 5.8%, and 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.
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 total annual growth rate of 39%, and it's also substantially lower than the 30% forecast for 2007 by Robinson during the company's fourth-quarter/year-end presentation in March.
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