Advertising down, online subscriptions up at WSJ

Dow Jones & Co., the parent of The Wall Street Journal and Barron’s, reported second-quarter earnings on Thursday that included details about advertising and online subscriptions for both publications.

The company stated, “Advertising revenue at the Wall Street Journal U.S. print edition declined 6.8% (on an 11.4% decline in volume) as weak technology, financial, general and classified advertising more than offset an increase in most consumer categories. This decline was partially offset by a 40.9% jump in ad revenue at international media, a 26.3% increase at Barron’s and a 2.7% increase at The Wall Street Journal Digital Network.

“Increased circulation revenue included gains at The Wall Street Journal Digital Network and the U.S. print Journal and the acquisition of eFinancialNews. Operating income grew 31.1% to $25.6 million and margin improved 210 basis points to 8.8% in the second quarter of 2007 due to cost-saving initiatives and strong profit leverage on increased revenues.

“Paid subscribers to The Wall Street Journal Online grew 23.6% in the second quarter to 983,000 driven in part by the success of an offer for new subscribers to receive both the print and Online Journal and by the previously announced change in our methodology to count those subscribers who have paid and registered to use the Online Journal. For more information on this change, please see footnote 2 to the supplemental segment statistical information. Paid subscribers to Barron’s Online grew 42.6% in the second quarter to 97,000.”