Online was certainly the bright spot in Dow Jones’s better-than-expected third quarter. Advertising revenue surged 12.4 percent despite a slow July, while paid subscribers to the Wall Street Journal Online jumped 3.1 percent to 788,000. The third quarter was a busy one for New York-based Dow Jones. The company announced that it was considering the sale of as many as six of its Ottaway newspapers and outsourced some technology and finance jobs. The company announced early this morning that it would buy out Reuters’ stake in Factiva for $160 million.
Overall, revenue for the New York-based company jumped 3.9 percent in the quarter to $412.4 million. Net income surged 57 percent to $16.01 million, or 19 cents per share, from $10.17 million, or 12 cents, helped by a one-time tax gain. Excluding the specialitem, profit was $9.38 million, or 11 cents per share; analysts expected 10 cents on revenue of $442.78 million, according to Thomson Financial.
September advertising revenue at the Journal dropped 5.9 percent amid declines in the technology, classified, general and financial categories. In particular, financial lineage fell 14.2 percent. The paper also saw its first classified advertising declines since last January because of the decline in the real estate market. Barron’s revenue jumped 20.4 percent and international advertising rose 36.7 percent while Ottaway saw a 1.9 percent decline excluding discontinued operations.
— Barron’s Online, which went to a separate paid product Jan. 1 has added 70,000 paid subscribers as of September 30, 2006.
Earnings| Conference Call