The Web’s holding it up for NYT, as I mentioned two days ago…But before you get too excited, though, the digital segment constituted just 3.5% of the Times’ total ad revenue so far in 2004.
All the same, the unit is making rapid strides toward establishing itself as a major growth engine. The compound annual growth for its revenue was 20.8% from 2001 to 2003, vs. 3% for the newspaper segment and 1.6% for the broadcasting area. Operating margin was a healthy 23% in 2003, above the 18% achieved by the newspaper group, and nearly as good as the 24.6% for the broadcast segment.
The Times appears to be well ahead of competitors in capturing these new dollars. For 2003, The Washington Post online ad revenues were $46.9 million, and Dow Jones brought in an estimated $21 million from Internet ads.