NY Times struggling to grow ad revenues

NEW YORK - The

New York Times

today forecast second-quarter earnings of 41 cents to 43 cents per share, compared to 42 cents a year ago, citing an improved but still challenging advertising market.

The publisher of the

New York Times

, the

Boston Globe

and the

International Herald Tribune

said its forecast included an estimated $5 million to $6 million, or 3 to 4 cents per share, for a programme to cut staff that it announced last year.

Wall Street is expecting earnings before items of 47 cents a share, and net income of 42 cents per share, according to Reuters Estimates.

"While advertising revenues in the second quarter have exhibited year-over-year improvement, the ad market remains challenging," Janet Robinson, president and chief executive officer, said in a statement. "So far this month we have not seen a continuation of May's strength."

The publisher, which also owns 15 other daily papers, nine network-affiliated television stations, two New York City radio stations and 35 websites including About.com, said it would update its full-year outlook when it reports quarterly results on July 18.

It also said it believes that About.com, which it acquired a year ago, would boost earnings in 2006. Previously, the publisher said About.com would add to earnings in 2007.

The outlook comes a day before US publishers meet at the Mid-Year Media Review in New York. The annual meeting gives them a chance to outline strategies and try to renew Wall Street's confidence in a sector dogged by falling circulation and advertising dollars fleeing to the internet and other new media.

The

New York Times'

share price has fallen about 11 per cent this year to $23.60, underperforming a 3 per cent fall in the Standard & Poor's Publishing Index