CHICAGO — The New York Times Co. and McClatchy Co. saw their
stocks rise Tuesday after the two newspaper publishers said they are seeing
improvements in the advertising market.
Shares of The New York Times Co. closed up 1.1 percent at
$9.00, down from the day’s high of $9.29. McClatchy shares jumped 13.8 percent
to $2.97 after peaking at $3.29. Both companies updated their outlooks ahead of
planned presentations at the UBS Global Media & Communications Conference.
Shares of E.W. Scripps rose 1.8 percent after the company’s
own presentation.
Also on the rise was Gannett Co., up almost 6 percent at
$11.74, which makes a presentation at the same event on Wednesday.
In its statement and presentation, The New York Times said
it expects fourth-quarter advertising revenue to drop 25 percent compared to
the same period last year, but that online ad sales are picking up momentum.
“While the print advertising market remains very
challenging, trends have improved modestly as the quarter progressed,” CEO
Janet Robinson said in a statement.
Third-quarter ad revenue had declined by 27 percent, and by
30 percent in the second quarter. Online ad revenue is expected to rise by
about 10 percent, the company said. As recently as the second quarter, total
online revenue at the company dropped 14 percent.
For the year, New York Times Co. expects total debt to be
about $800 million, down from $1.1 billion at the end of 2008.
Robinson also said the company has completed its strategic
review of the Worcester Telegram & Gazette, and has decided to keep the
newspaper.
Also Tuesday, newspaper publisher McClatchy said
fourth-quarter advertising revenue is expected to drop in the low- to mid-20s
percent range, compared to a 28.1 percent drop in the third quarter and a 30.2
percent drop in the second quarter.
Cash expenses will fall in the high-20s percent range, and
operating cash flow is expected to grow both in the quarter and in 2010.
Via McClatchy-Tribune News Service.
