NY Times Internet Ad Revenues Up 30% (NYT)

| About: New York (NYT)
This article is now exclusive for PRO subscribers.

From the NY Times conference call last night (full transcript):

Our web sites and the New Media groups had very strong growth in advertising revenues, up 30% in the quarter, a particularly good showing given the large revenue base for this increase. We continue to be very pleased with the performance of About.com, which we acquired last March. It is consistently among the 10 most-visited sites in the US and is the largest web publisher of original content with 43 million average monthly unique visitors worldwide, up from 35 million when we acquired it last March. In the US alone, About.com averages 29 million unique visitors each month, up from 22 million last March. The improvement in visitors has translated into revenues.

In the quarter, About.com's revenues climbed an estimated 51%. All three of its revenue streams, display advertising, cost-per-click advertising, and e-commerce showed strong growth. This was driven by higher rates, and increased spending from blue-chip advertisers. About.com continues to drive traffic to nytimes.com, Boston.com, and our other web sites. It also continues to cross market our sites, further promoting our brands, and extending our reach into readers' homes and offices. With About.com, nytimes.com, and Boston.com, we are able to offer over a million monthly page reviews to the marketplace. And because of About.com's strong performance in 2005, dilution was only a penny a share. This year we do not expect dilution from About.com.

In total, our digital businesses generated $198 million in 2005, accounting for about 6% of the company's revenues. This included About.com, nytimes.com, Boston.com, the web sites of our regional and broadcast media groups, and our digital archives. In terms of unique visitors, we are the 10th largest entity on the Internet, a very important selling point with advertisers.