N.Y. Times to increase its ad rates by about 5%

Alex Berenson
International Herald Tribune
12-08-2005
The New York Times Co. has said that it would raise advertising rates about 5 percent at The New York Times next year and to spend at least $40 million on previously announced employee cutbacks.The company released the figures as part of its guidance for Wall Street analysts and investors. The company did not provide an earnings estimate or a revenue forecast for the fourth quarter, or for 2006.The company, which owns the International Herald Tribune, said it would provide a fourth-quarter forecast later in December.''Given the limited visibility on advertising in 2006, the company is not providing an expected range for earnings, revenue growth or expense growth,'' the company said Tuesday in a statement.The chief executive, Janet Robinson, said in the statement that ''the media marketplace has been challenging in 2005 and we expect it will continue to be next year.'' Like other newspapers, The Times is struggling to hold on to readers and advertisers in the face of increased competition from the Internet.The company said its advertising revenue would increase ''in the low single digits'' for 2005, and circulation revenue would be ''flat to down slightly.'' The company did not provide a similar forecast for 2006.The Times Co. is also facing substantially higher prices for newsprint and the cost of building a new headquarters. In its statement, the company predicted that newsprint costs would rise at least 11 percent in 2006, after an increase of at least 8 percent this year. In the last year, analysts have reduced their forecasts for the company's 2005 earnings by about 30 percent, and its stock has slipped. On Tuesday, shares of The Times Co. closed down 23 cents at $26.61, their lowest level in seven yearsThe company also said About.com, a Web site acquired in March, would have double-digit revenue and operating income growth in 2006.

2005 Copyright International Herald Tribune. http://www.iht.com