Blog Post

Earnings: DJ Q1 Call: Zannino: Subs Prove That “Users Will Pay For Valuable Content”

Full revenue was up 26 percent for Dow Jones Online, advertising revenue was up 26 percent and circulation was up 29 percent for Dow Jones Online, still-new CEO Rich Zannino said during the prepared remarks for the 1Q06 call. Of course, we don’t have a baseline real number for the revenue gains. Charging separately for Barron’s Online gives the company an additional revenue stream and, he said, proves that “online users will pay for valuable content.”’s performance came up during Q&A. the site’s monthly uniques were down by more than 1 million year over year but CFO Chris Vieth said that trend is starting to change. He referred obliquely to the Yahoo deal that ended last year and took a large bite out of traffic, noting that “we’ve only just restarted again this year.” Month-to-month traffic is improving; also page views were up substantially over last year and are also growing sequentially. Vieth: “That is really what generates our inventory. We’ve got plenty of inventory at MarketWatch to sell. … Again, we’re very, very pleased with the Market Watch acquisition and the way it is progressing and proceeding and the numbers that it is throwing off. We believe that will only get better as this year progresses.”
Asked about online advertising pricing, Gordon Crovitz, EVP-consumer, explained that DJ’s gets most of its gains through increased targeting. He also said they’re seeing some of the lower CPM sites in the segment raise rates a bit, which should help Dow Jones Online. Crovitz: “We are, as we said before, very focused on efficiently monetizing the traffic that we have.”
Crovitz also addressed the Barron’s Online shift, offering a little bit of context. The total number of paid subscriptions to both and is 820,000, up 89,000, or 12 percent, from last year when only Online Journal subs were counted. Crovitz said subscriptions actually rose 4 percent from last year when conversion to Barrons is included. The primary focus at first was migrating subscribers who primarlily wanted Barrons and upselling Online Journal subs. “I think it is fair to say we were pleasantly surprised by the volume number on Barron’s Online in such a short period of time. We think it will continue to grow nicely.”
I was going back through the Q&A for quotes when Seeking Alpha posted its transcript.
mp3logo1.gifYou can download the audio (34 min; 10.6 Meg) here (I tried to enhance the sound so most of it is audible)
Or you can stream it here … click on the arrow: [audio:]