These initiatives include reformatting its Asian and European editions on Oct. 17 into an easier-to-read, convenient and accessible compact format; combining the Asian and European print editions with the award-winning The Wall Street Journal Online at WSJ.com to better serve the needs of highly mobile international business leaders; pursuing a new, more targeted circulation strategy focused on C-suite executives; and making a number of related personnel promotions and reassignments. The combination of a compact format, plus the full content of The Wall Street Journal Online--the largest paid subscription news site on the Web--will offer readers a more convenient daily package of more news in more ways that better suits how busy readers use news today.
Advertisers, likewise, will be able to reach this uniquely attractive global audience in print and online--in the U.S. and abroad--through global advertising packages and new advertising positions, including more color advertising positions and, for the first time, front-page color advertising in Europe and Asia.
These international initiatives also will benefit Dow Jones shareholders by increasing profit and margins in its print publishing segment. Through more efficient allocation of resources, cost savings associated with the production of the compact format, and other related savings, the Company expects to save approximately $17 million annually, beginning in 2006. In 2005, these savings will total about $5 million, before approximately $6 million to $8 million of cash restructuring and other one-time implementation costs.
These initiatives will involve some promotions as well as the repositioning of a number of news jobs. Frederick Kempe, editor and associate publisher of The Wall Street Journal Europe, will return to New York effective Aug. 1, in the new post of assistant managing editor, international, responsible for enhancing coverage for our print and online readers outside the U.S. Raju Narisetti, currently managing editor of The Wall Street Journal Europe, will succeed Mr. Kempe as editor. Both Mr. Kempe and Mr. Narisetti will report to Paul Steiger, managing editor of The Wall Street Journal. Some other news jobs will be relocated to the U.S. where the Journal is preparing to launch its Weekend Edition Sept. 17.
This announcement is part of a 2005 "Journal on the Move" initiative that includes launching a Weekend Edition on Sept. 17, to be delivered on Saturday mornings to all U.S. subscribers. In Europe and Asia, weekend coverage will appear in Friday editions.
The Wall Street Journal Europe and The Asian Wall Street Journal are the first pan-regional daily publications in their markets to move to the compact format. Newspaper publishing experience has shown that compacts are increasingly popular with readers in many parts of the world.
According to syndicated research, the Wall Street Journal editions in both Europe and Asia have consistently delivered to advertisers one of the most affluent and exclusive audiences in their markets, and the redesigned content package and new format--combined with the online edition--are designed to further enhance their strong penetration of global business leadership.
"The combination of the new content and compact format, together with the online edition, will give our readers a more convenient and useful global business daily briefing package. We will thus provide our advertisers with the most efficient way to reach the world's most influential and affluent audience of business decision-makers," said Penelope Muse Abernathy, senior vice president, international and development, The Wall Street Journal.
John McMenamin, head of international advertising sales, The Wall Street Journal said, "These new initiatives are an aggressive step to offer advertisers increased access to the Journal's unparalleled audience by combining both print and online platforms, and shifting to a compact format that better lends itself to the needs of our global readership and the advertisers who want more opportunity to reach them."
The newspapers will carry more themed and regionally relevant content and an updated statistics package, more navigational online tools, more stories and fewer jumps between pages. The Asian Wall Street Journal will be renamed The Wall Street Journal Asia when the compact edition launches in October, and will continue to be edited in Hong Kong. The Wall Street Journal Europe will continue to be edited in Brussels.
The moves, as noted, will result in the repositioning of a number of news jobs from Europe and Asia to the U.S., where the Journal is expanding its news staff in preparation for launch of its Weekend Edition. After these reassignments, the Journal's more than 100 non-U.S.-based news professionals will continue to comprise the largest news team outside the U.S. of any U.S. publication, and the largest outside its home market of any English-language publication. In addition to the Journal, Dow Jones Newswires has nearly 500 editors and reporters outside the U.S. In total, Dow Jones has a world-wide news staff of nearly 1700.
John Bussey, deputy managing editor, The Wall Street Journal, and the senior editor for the paper in Asia, said, "As the longest-established and leading pan-regional business publication in Asia, The Asian Wall Street Journal has been an innovator since its creation in 1976. This move further reinforces our commitment to covering the growth and vitality of the Asian marketplace, and of Asia's role in the global economy for the Journal's readers in Asia and world-wide."
With a circulation of 80,883 - 72% of whom are in senior management - The Asian Wall Street Journal has for two decades been consistently voted the region's "most important business reading" by Asia's business leaders (ABRS 2004). The Wall Street Journal Europe, founded in 1983 and with a circulation of 86,156, has the highest-profile readership of its peers with 64% in senior management (EBRS 2004). It was the only pan-European newspaper to grow its share of the advertising market between 1999 and 2004.
"Our international readers need an authoritative, daily analysis of global business in a form that's readily accessible and available--no matter where they are," added Mr. Kempe. "Building on the established success of the compact newspaper concept in Europe, we'll continue to offer the same award-winning, Journal-quality reporting and writing but packaged in a more convenient format. We'll continue to build on our unsurpassed capabilities to provide concise focus on the main stories driving global business our readers won't find anywhere else."
Advertisers who are interested in obtaining more information can contact Mr. McMenamin at email@example.com.
About The Wall Street Journal
The Wall Street Journal, the flagship publication of Dow Jones & Company (NYSE: DJ; www.dowjones.com), is the world's leading business publication. Founded in 1889, The Wall Street Journal has a print and online circulation of nearly 2.1 million, reaching the nation's top business and political leaders, as well as investors across the country. Holding 31 Pulitzer Prizes for outstanding journalism, the Journal seeks to help its readers succeed by providing essential and relevant information, presented fairly and accurately, from a dependable and trusted source. The Wall Street Journal print franchise has more than 600 journalists world-wide, part of the Dow Jones network of nearly 1,700 business and financial news staff. Other publications that are part of The Wall Street Journal franchise, with total circulation of more than 2.6 million, include The Asian Wall Street Journal, The Wall Street Journal Europe and The Wall Street Journal Online at WSJ.com, the largest paid subscription news site on the Web. In 2005, the Journal was ranked No. 1 in BtoB's Media Power 50 for the sixth consecutive year.
About Dow Jones & Company
In addition to The Wall Street Journal and its international and online editions, Dow Jones & Company (NYSE: DJ; www.dowjones.com) publishes Barron's and the Far Eastern Economic Review, Dow Jones Newswires, Dow Jones Indexes, MarketWatch, and the Ottaway group of community newspapers. Dow Jones is co-owner with Reuters Group of Factiva, with Hearst of SmartMoney and with NBC Universal of the CNBC television operations in Asia and Europe. Dow Jones also provides news content to CNBC and radio stations in the U.S.
Information Relating To Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those anticipated: including the cyclical nature of the Company's business and the strong, negative impact of economic downturns on advertising revenues, particularly in the Company's core advertising market-B2B advertising; the risk that inconsistent trends across major advertising categories, such as technology and finance, will continue and that B2B advertising levels, particularly in technology and finance, may or may not return to historical levels; the Company's ability to expand and diversify the Journal's market segment focus beyond financial and technology; the Company's ability to limit and manage expense growth, especially in light of its prior cost cutting and its planned growth initiatives; intense competition for ad revenues and readers the Company's products and services face; the impact on the future circulation of the Journal and community newspapers that may be caused by the declining frequency of regular newspaper buying by young people; the Company's ability to successfully integrate the MarketWatch business into its existing business units, and to achieve production and operational efficiencies and synergies in doing so; with respect to Newswires and other subscription-based products and services, the negative impact of business consolidations and layoffs in the financial services industry on sales; the uncertainties relating to the Company's guarantee to Cantor Fitzgerald Securities and Market Data Corporation; and such other risk factors as may be included from time to time in the Company's reports filed with the Securities and Exchange Commission and posted in the Investor Relations section of the Company's web site (www.dowjones.com). The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.