The New York Times Company Expects Q4 Ad Revenue to Improve from Q3

The New York Times Company NYT today will discuss its business, strategy and management's outlook during the UBS 38th Annual Global Media and Communications Conference. The Company expects fourth-quarter print advertising revenues to improve from third-quarter levels, with a decline of approximately 4 percent year-over-year, although it has limited visibility into December. Digital advertising revenues continue to post healthy gains and are expected to be up approximately 10 percent in the fourth quarter of 2010. Circulation revenues are expected to decrease 4 to 5 percent in the fourth quarter. The Company projects fourth-quarter operating costs to decrease 2 to 3 percent, and operating costs excluding depreciation, amortization and severance to be comparable to the same period in 2009. These costs reflect significantly higher newsprint prices and costs associated with the launch of the NYTimes.com pay model. The expected decrease in operating costs on a GAAP basis for the fourth quarter of 2010 is due in large part to approximately $25 million in severance costs in the fourth quarter of 2009. As previously stated, the Company expects higher year-over-year newsprint prices in the fourth quarter to negatively affect operating expenses by approximately $13 million, excluding a favorable impact on operating expenses of lower consumption.