Opening the call by immediately citing the troubled economy and the challenges faced by the newspaper industry at large, Janet Robinson, NYTCo.'s president and CEO, sought to highlight a few bright spots. Even with the decreased operating income and revenue, Robinson pointed to what she said was the NYT's continued brand strength, reflected in 2 percent growth in circulation revenue in the face of raising newsstand and home delivery prices. The newsstand price will rise again on August 18 from $1.25 to $1.50, Robinson noted.

On NYTimes.com, traffic is continuing to grow, with 17.7 million uniques last month, up roughly 40 percent over last year, Robinson said, citing Nielsen Online data. But on the ad side, the economic slowdown has affected advertising, in particular in the airlines and autos area. Trying to offset what she described as softness in display, digital investments are expected to rise—and therefore lead to increased costs—for the About Group.

Q&A:

-- Asked about the online ad situation, Martin Nisenholtz, SVP, Digital Operations, insisted tha