• by John Gaffney , July 15, 2003

The nation's three biggest newspapers announced second quarter earnings yesterday, and strictly from an ad page and revenue standpoint, the result was mixed.

At the Times the total newspaper group revenues grew 3.8 percent in the second quarter to $745.9 million from $718.9 million in 2002. Advertising revenues increased 3.3 percent and circulation revenues increased 4.4 percent compared with the same period in 2002. Excluding the International Herald Tribune, which was purchased from The Washington Post in January, advertising revenues rose 1.7 percent and circulation revenues were even compared with the second quarter of 2002.

Operating profit for the Newspaper Group decreased 7.5 percent to $126.6 million in the second quarter from $136.8 million in the 2002-second quarter, mainly because of higher benefits and compensation costs as well as an increase in newsprint expense. New York Times Digital Revenues grew 21.7 percent in the second quarter to $21.6 million from $17.8 million in the 2002 second quarter, and operating profit increased to a record $4.3 million from $1.9 million, primarily due to higher advertising revenues resulting from increased volume.

Taken on its own, the month of June was better for the Times than its overall Q2 picture. Advertising revenue for its newspaper group in increased 4.6% compared with the results for the same month last year. Including the results of the International Herald Tribune (IHT), which was acquired from The Washington Post on January 1, advertising revenue rose 6.6% for the month.

At the New York Times revenue increased 3.5%. Categories responsible for the bounce included transportation and telecommunications. Retail advertising was on a par with last year as growth in department store and home manufacturer store advertising offset softness in the fine arts and mass market/chain store categories. Classified advertising revenue continued to decrease.

Revenue at the company's New England Newspaper Group, which includes The Boston Globe, increased 8.9%. National advertising revenue was unusually strong with increases in most major categories including travel, telecommunications, technology, entertainment and national automotive advertising. Retail advertising revenue increased because of strength in sporting goods and home-related store advertising. Classified advertising revenue increased due to gains in real estate. The company's regional group was close to flat with a 2.1% increase.

Q2 was tougher at The Wall Street Journal. According to parent company Dow Jones, revenue declined 5.6% in the second quarter of 2003 to $393.6 million. Print publishing revenues declined 10.3% in the second quarter to $234.3 million, reflecting the "continued difficult global advertising environment." However, print publishing operating income of $5.6 million in the second quarter was up 8.0% from the prior year period. Advertising linage at The Wall Street Journal (U.S.) fell 7.9% (up 1.0% in June, with one extra issue) while linage at the international editions of the Journal declined 0.2% (up 24.9% in June, with one extra issue). Barron's ad pages were down 22.9% in the quarter (up 16.1% in June, with one extra issue).

According to a Gannett statement, at USA TODAY, advertising revenues were almost even with last year's second quarter results despite substantially lower demand for travel related advertising. Paid advertising pages totaled 1,220 compared with 1,236 in the same quarter of 2002, a 1% decline. Year-to-date, USA TODAY's advertising revenues were slightly ahead of last year and paid pages numbered 2,316 compared with 2,414 last year, a 4 percent decline. USA TODAY's results in the quarter benefited from strong automotive, technology and entertainment advertising.