New York Times Company (the) · NYSE:NYT
New York Times Company (the) — Bear Stearns 21st Annual Media Conference 2008
34 slides from New York Times Company (the)'s conference presentation, Mar 11, 2008
Slide 1: Bear Stearns 21st Annual Media Conference March 11, 2008
Bear Stearns 21st Annual Media Conference March 11, 2008
Slide 2: Janet Robinson President & CEO
Janet Robinson President & CEO
Slide 3: Challenging Times
Challenging Times Protecting the brand and maintaining journalistic excellence are paramount Capitalizing on opportunities in print while improving productivity and improving our cost structure Growing our Internet businesses organically while making smart acquisitions
Slide 4: Transforming The Times Company
Transforming The Times Company
Slide 5: Focusing Strategy and Strong Execution
Focusing Strategy and Strong Execution Introducing innovative new products and services in print and online Building on the digital capabilities of our R&D team Aggressively managing costs Rebalancing our portfolio of businesses by making both acquisitions and divestitures
Slide 6: We Are Making Progress
We Are Making Progress Online revenues up 22%* Circulation revenues up 2%* Operating costs decrease 2% Asset sales total $615 million Acquisitions equal $35 million Dividend increases 31% Operating profit before D&A and special items rose modestly * Excluding the additional week from 2006. Including
Slide 7: Managing our Print and Digital Businesses
Managing our Print and Digital Businesses
Slide 8: Style with a Capital T
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Slide 9: Style with a Capital T
Style with a Capital T
Slide 10: Olympic Advertising Campaign Alliance with Nielsen
Olympic Advertising Campaign Alliance with Nielsen Nielsen-Sponsored Olympic Issue of Play Magazine to be distributed in the Sunday Times and the IHT across Asia Will include multi-platform advertising campaign covering print, online, radio and mobile
Slide 11: New Products at The Boston Globe
New Products at The Boston Globe
Slide 12: Circulation Revenues in 2007
Circulation Revenues in 2007 The New York Times: Moving away from less profitable circulation More than 800,000 loyal subscribers
Slide 13: Total Times Audience Growing
Total Times Audience Growing Over the past five years, our multi-platform strategy has made our total brand audience even more robust The New York Times print edition reaches 4.7 million readers each weekday and 6.3 million on Sunday NYTimes.com had 20.5 million unique visitors in Jan. ‘08 versus 14
Slide 14: Significant Online Presence
Significant Online Presence Source: Nielsen Online January 2008 51,624 New York Times Co. 10 56,049 Wikimedia Foundation 9 59,831 Amazon 8 65,097 eBay 7 65,691 InterActive Corp. 6 74,991 News Corp. 5 101,290 Time Warner 4 106,056 Microsoft 3 111,816 Yahoo! 2 123,898 Google 1 Uniques in thousands Com
Slide 15: Internet Strategy Producing Strong Results
Internet Strategy Producing Strong Results About.com’s expertise helps us attract more users since it excels at optimizing content for search By increasing the exposure of our content through search, we are attracting additional users By analyzing how users view a page, we can deepen engagement By u
Slide 16: Growing Our Digital Businesses
Growing Our Digital Businesses Internet Revenue as % of Total Company Revenue 10% 4% 6% 8% 0% 2% 4% 6% 8% 10% 12% 2004 2005 2006 2007
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Slide 18: Continued Strong Performance at About.com
Continued Strong Performance at About.com 2007 revenues up 28%, or 30% excluding the additional week in 2006 CAGR 2005-2007:* Revenues 40% Operating Profit 55% *Growth rates are based on the previous owner’s accounting records before the acquisition date in March 2005 and The Times Company’s results
Slide 19: Acquisitions Strengthen About Group
Acquisitions Strengthen About Group Acquired sites that enhance position in key health vertical ConsumerSearch.com offers significant growth potential Making investments to further strengthen these sites
Slide 20: Vibrant R&D Capability
Vibrant R&D Capability Anticipating consumer preferences, devising ways of satisfying them and assisting in product development across the Company
Slide 21: Relationships with CNBC
+ Relationships with CNBC ESTING OKO. CRECTV. CROC PLUS
Slide 22: Relationships with Leading Web Entities
Relationships with Leading Web Entities Combines our market leading sites with Monster’s technology & database with co-branded sites targeting local & national recruitment markets The Times Company continues to be among Google’s largest content partners Yahoo! will provide advertising and search ser
Slide 23: James Follo Senior Vice President & Chief Financial Officer
James Follo Senior Vice President & Chief Financial Officer
Slide 24: Building For Our Future
Building For Our Future Financial discipline Greater efficiency Greater productivity Exceeded 2007 cost reduction goal of $65 to $75 million Expect to save $230 million in 2008 and 2009* *Excluding the effects of inflation, staff reduction costs and one-time costs as compared to our year-end 2007 ca
Slide 25: Streamlining Our Businesses
Streamlining Our Businesses Consolidating New York-area plants Reducing the printed page size of The Times and the Globe Shifting away from less profitable circulation Standardizing, streamlining and consolidating processes Shifting staff to lower cost locations
Slide 26: Disciplined Capital Allocation
Disciplined Capital Allocation We take a very disciplined approach to allocating our capital. We regularly review our businesses bearing in mind their: • Financial performance • Growth prospects • Return on investment • Relevance to our strategy We regularly analyze the valuations of all of our busi
Slide 27: Disciplined Approach to Acquisitions
Be consistent with our core purpose, values and strategy Offer a sustainable competitive advantage Be realistically capable of successful execution Provide an attractive ROIC Fit into the organization in a manner that ensures successful execution Every acquisition must pass a five-part test: Discipl
Slide 28: Over $500M in Acquisitions & Investments in New Media Since 2005
Over $500M in Acquisitions & Investments in New Media Since 2005 Acquisitions Investments
Slide 29: Divestitures Totaling More Than $700 Million
Discovery Times Channel – With broadband penetration increasing, shorter form video has proven popular with both users and advertisers and that is where we are focusing our efforts. Sold our ownership interest in 2006 for $100 million. Broadcast Media Group – Sale allowed us to focus on developing a
Slide 30: Priorities for Cash Flow
Priorities for Cash Flow Investing in high-return capital projects that will improve operations, increase revenues and lower costs Making acquisitions and investments that are financially and strategically attractive Reducing debt to allow for financing flexibility Regularly evaluating repurchase of
Slide 31: Rewarding Our Shareholders With An Attractive Dividend
Rewarding Our Shareholders With An Attractive Dividend In March we announced that we were increasing our quarterly dividend 31% to $.23 per share from $.175 per share Our dividend yield is currently ~5% Both our yield and our payout ratio are significantly above that of the S&P 500 and others in our
Slide 32: Q&A
Q&A
Slide 33: Additional Information and Where to Find It
Additional Information and Where to Find It The New York Times Company and its directors, executive officers and certain other employees may be deemed to be participants in the solicitation of proxies from its stockholders in connection with our upcoming annual meeting and the notice we received fro
Slide 34: Forward-Looking Statements
Forward-Looking Statements Except for the historical information contained herein, the matters discussed in this presentation are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those predicted by such forward-looking statemen
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