New York Times says print ad revenue improving ‘modestly,’ sees 4Q down 25 pct; shares rise

New York Times says print ad decline moderating

NEW YORK — The New York Times Co. said Tuesday that the print advertising market has improved “modestly,” boosting shares of the newspaper company.

The Times Co. expects its print advertising revenue to decline 25 percent in the fourth quarter from the same period of 2008. While that is high by traditional standards, it marks an improvement over the 31.2 percent decline the Times Co. reported in the third quarter. And it is slightly better than what other newspaper companies generally have been reporting this year.

The Times Co.’s chief executive, Janet Robinson, also said she expects online advertising revenue to increase by about 10 percent in this quarter. Online ads dropped by 18.5 percent in the last quarter.

Another newspaper publisher, McClatchy Co., also said Tuesday that it sees the advertising market getting stronger, and its shares jumped 29 cents, or 11 percent, to $2.90 in morning trading.

McClatchy expects its fourth-quarter ad revenue to fall in the low- to mid-20 percent range.

That comes after a 28.1 percent decline in the third quarter and a drop of 30.2 percent in the second quarter. Similarly, advertising revenue in the publishing division of Gannett Co., which includes USA Today and more than 80 other newspapers, dropped 28 percent in the third quarter and 32 percent in the second quarter.

However, the comparisons to last year are getting easier as this year goes on, given that the financial crisis deepened the recession in late 2008.

Newspaper companies have dealt with the advertising shortfalls by raising newsstand prices and cutting costs. Most recently the Times Co. laid off at least 25 people at its New York Times News Service, and the company plans to eliminate 100 newsroom jobs at the flagship newspaper by year’s end.

The Times Co. said Tuesday that with its expense reductions and other financial maneuvers it expects its debt to be reduced to $800 million at the end of the year, from $1.1 billion a year ago.

“We strongly believe we are a company prepared for the challenges of 2010 and the coming decade,” Robinson told analysts at the UBS media conference in New York.

The company also said Monday it would stop discussions for the sale of the Worcester Telegram & Gazette and would keep the Massachusetts newspaper. The Times Co. had decided earlier in the year to maintain its ownership of The Boston Globe.

Times Co. shares rose 11 cents, or 1.2 percent, to close at $9.01 Tuesday after trading as high as $9.29 earlier in the session.