Internet revenue in the news group (newspapers) accelerated slightly, to 14% from 9% in January. This is positive, but the growth rate is still a far cry from last year’s 20%+.
Revenue at About.com, NYTCO’s only real growth engine, decelerated to 20% from 25% in January and 35% in 2007. This deceleration will likely increase calls for the NYT to sell About.com, especially now that two dissident shareholders will likely be joining the board.
Advertising at the NYT group decreased a less-severe 4%. National ads increased, largely as a result of strength in fashion. This was offset by retail and classified weakness:
Retail advertising revenues decreased mainly due to softness in department store, fine arts and mass market advertising. Classified advertising revenues decreased because of weakness in help-wanted, real estate and automotive advertising.