New York Times execs will be pumping up the paper’s financial outlook today at the J.P. Morgan Global Technology, Media and Telecom Conference in Boston.
The company just sent out a press release predicting year-over-year ad revenue improvements and “reaffirming” the expectations it laid out for the remainder of 2010 during its first-quarter earnings release back in April.
“We continue to expect year-over-year revenue trends for the second quarter for print advertising to improve from the levels of the first quarter, while digital advertising is expected to trend similarly to the first quarter, with increases from 2009 in the high teens,” said CEO Janet L. Robinson in a statement.
NEW YORK, May 17, 2010 (BUSINESS WIRE) –The New York Times Company today will discuss its business, strategy and management’s outlook during the 38th Annual J.P. Morgan Global Technology, Media and Telecom Conference.
“Based on what we have seen to date, we continue to expect year-over-year revenue trends for the second quarter for print advertising to improve from the levels of the first quarter, while digital advertising is expected to trend similarly to the first quarter, with increases from 2009 in the high teens,” said Janet L. Robinson, president and chief executive officer.
The Company also reaffirms its previously announced 2010 expectations, provided in its first-quarter earnings release, as follows:
While we will remain diligent in managing our operating expenses, we expect that through the remainder of 2010 year-over-year cost savings will moderate, in part because we will be cycling past several major expense-reduction initiatives implemented in mid-2009, we reinstated many of the salary rollbacks implemented in the second quarter of 2009, and newsprint prices are currently rising. We do expect to manage our operating cost base such that we will adjust expense levels to offset any revenue declines through the remainder of the year.
Given recent announcements of additional price increases by suppliers, we expect newsprint price comparisons to be slightly favourable in the second quarter and unfavorable in the third and fourth quarters of 2010.
In addition, the Company expects the following on a pre-tax basis in 2010:
- Depreciation and amortization: $125 to $130 million,
- Capital expenditures: $45 to $55 million,
- Interest expense, net: $85 to $90 million, and
- Income from joint ventures: $5 to $10 million, excluding a gain of approximately $13 million (the Company’s share is approximately $10 million) from the sale of an asset at one of the paper mills in which the Company has an investment and a gain of approximately $9 million from the sale of a portion of the Company’s interest in NESV.
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