The New York Times has recorded its best advertising performance in five years. The New York Times Company's flagship newspaper saw advertising revenues increasing by 9.4 per cent in October this year compared to the same period last year, the company reported on Wednesday.
In October 2005 advertising revenues for the company's business units increased 4.8 per cent and total company revenues increased 2.5 per cent compared to October 2004. Excluding About.com, which was acquired by the company in March 2005, advertising revenues increased 2.3 per cent and total company revenues increased 0.7 per cent. Circulation revenues for October, in fact, decreased 1.4 per cent. Circulation revenues increased at the New York Times Media Group and the Regional Media Group but declined at the New England Media Group. The Broadcast Media Group's advertising revenues decreased 25.5 per cent due to lower political advertising.
The New York Times Company, with 2004 revenues of $3.3 billion, includes the New York Times, the International Herald Tribune, the Boston Globe, 15 other daily newspapers, nine network-affiliated television stations, two New York City radio stations and 35 websites, including NYTimes.com, Boston.com and About.com.
Advertising revenues for the New York Times Media Group increased 9.4 per cent, with the New York Times newspaper recording its highest advertising revenues since October 2000. National advertising revenues increased as strength in studio entertainment, corporate, transportation/travel and financial services advertising offset weakness in the pharmaceutical, technology, telecommunications and packaged goods advertising categories. Retail advertising revenues increased on growth in mass market and fine arts advertising. Classified advertising revenues rose as gains in real estate and help-wanted advertising offset softness in automotive advertising.
Internet ad revenues included in the three media groups above increased 30.1 per cent due to strong growth in display advertising and in all classified advertising categories. Year-to-date Internet ad revenues grew 29.3 per cent.
About.com continued to show strong advertising revenue growth as a result of increased spending in the technology, telecommunications, financial and travel categories. Gains were also achieved in entertainment, consumer packaged goods and health advertising.
Advertising revenues for About.com increased 92 per cent in October and 46 per cent year to date. The growth rates are based on the previous owner's accounting records before the acquisition date, which followed a calendar month, and the Times Company's results after the acquisition date, which are based on its fiscal months. Fiscal October 2005 had 35 days compared with 31 days for calendar October 2004.
The New England Media Group's advertising revenues, however,decreased by 6.5 per cent. Last October the group's advertising revenue rose 4.6 per cent as it benefited from increased advertising due to the Red Sox post-season run. National advertising revenues decreased as weakness in national automotive, financial services and telecommunications advertising more than offset growth in entertainment advertising. Retail advertising revenues decreased largely because of softness in department store, home-related and discount store advertising. Classified advertising revenues were lower as weakness in automotive and help-wanted advertising offset growth in real estate advertising.
Advertising revenues for the Regional Media Group rose 3.4 per cent. Excluding the North Bay Business Journal, which was acquired in February 2005, advertising revenues grew 3.0 per cent. Retail advertising revenues were up slightly as growth in banking/financial, home furnishing, medical/dental and insurance advertising offset softness in the department store, telecommunications, grocery store and political ad categories. Classified advertising revenues increased as gains in real estate and help-wanted advertising offset weakness in automotive advertising.
