NY Times net profit declines in fourth quarter

Feb 02, 2012
The New York Times Co. said that a print advertising revenue slide and weaker results at advice website About.com dragged down net profit in the fourth quarter.

The New York Times Co. said Thursday that a print advertising revenue slide and weaker results at advice website About.com dragged down net profit in the fourth quarter.

The Times Co., which owns The Boston Globe, International Herald Tribune and About.com in addition to the flagship New York Times, said fell 12 percent in the quarter to $58.9 million compared to a year ago.

Revenue declined 2.8 percent in the quarter to $643 million.

The Times Co. said it posted a net loss of $39.7 million for the full year compared to a net profit of $108 million the previous year, mostly because of a $161 million write-down in the value of its regional newspapers.

The Times Co. has since agreed to sell 16 regional newspapers for $143 million but the proceeds from the sale did not figure in the fourth-quarter results.

Earnings per share were 39 cents in the fourth quarter compared to 44 cents in the same quarter of 2010, slightly below the 42 cents per share forecast by .

The Times Co. said it ended 2011 with 390,000 digital subscribers to The New York Times and International Herald Tribune, up from 324,000 at the end of the third quarter, and 16,000 for the Boston Globe.

The Times began charging in March for full access to NYTimes.com and it launched a subscription-only website for the in October.

Like other US newspapers, The New York Times has been struggling with declining print advertising revenue, falling circulation and the migration of readers to free news online.

"In 2011 we made significant strides in our strategy to transform and rebalance our company," Times Co. chairman and chief executive Arthur Sulzberger said in a statement.

"Our fourth-quarter results demonstrate the continued focus on building The Times's base and developing a new robust consumer , while maintaining its significant business."

Sulzberger announced that the Times Co. has reached an agreement to sell another part of its stake in the Fenway Sports Group, which includes the Boston Red Sox baseball team and their iconic stadium, Fenway Park, for $30 million.

Print advertising revenue fell 7.8 percent in the quarter and digital was down 4.9 percent, mostly because of a slide in ad revenue at About.com.

About Group revenue decreased 25.9 percent to $26.1 million.

"The About Group's fourth-quarter performance continued to reflect the competitive and cyclical challenges that it faced through much of 2011," Sulzberger said. "The Group has made progress in its efforts to grow its content and traffic and to roll out its new display advertising sales plan."

Times Co. shares were down 2.15 percent at $7.51 in early trading on Wall Street.

Explore further: Yahoo sees signs of growth in 'core' (Update)

add to favorites email to friend print save as pdf

Related Stories

New York Times net profit dips 26 percent

Feb 03, 2011

The New York Times Co. on Thursday reported a 26-percent drop in quarterly net profit as an increase in digital advertising revenue failed to make up for what it lost in print ads and circulation.

New York Times suffers quarterly loss

Jul 21, 2011

The New York Times Company said Thursday it lost $120 million in the second quarter, as income from digital subscriptions failed to make up for a steep write-down of its print newspaper assets.

Over 100,000 paid subscribers for NYTimes.com

Apr 21, 2011

The New York Times Co. released its first figures on Thursday since it began charging for full access to NYTimes.com, saying it has signed up more than 100,000 paid subscribers in three weeks.

Recommended for you

Technip, Heerema win third giant Angolan oil contract

1 minute ago

The ultra-deep Angolan offshore oil project called Kaombo generated the third huge contract in three days on Wednesday when French group Total picked two firms to carry out underwater engineering worth $3.5 billion.

Bitcoin exchange MtGox placed in administration: CEO

31 minutes ago

Failed Bitcoin exchange MtGox was Wednesday placed in administration by a Japanese court, with an order for bankruptcy expected to be issued soon, its administrator and chief executive said.

Yahoo sees signs of growth in 'core' (Update)

14 hours ago

Yahoo reported a stronger-than-expected first-quarter profit Tuesday, results hailed by chief executive Marissa Mayer as showing growth in the Web giant's "core" business.

Twitter buys data analytics partner Gnip

17 hours ago

Twitter says it has bought its data partner Gnip, which provides analysis of the more than 500 million tweets its users share each day—to advertisers, academic institutions, politicians and other customers.

User comments : 1

Adjust slider to filter visible comments by rank

Display comments: newest first

5 / 5 (1) Feb 02, 2012
I am enjoying the spectacle of the Death of the Dinosaur Media. May it burn in hell.

More news stories

Patent talk: Google sharpens contact lens vision

(Phys.org) —A report from Patent Bolt brings us one step closer to what Google may have in mind in developing smart contact lenses. According to the discussion Google is interested in the concept of contact ...

Tech giants look to skies to spread Internet

The shortest path to the Internet for some remote corners of the world may be through the skies. That is the message from US tech giants seeking to spread the online gospel to hard-to-reach regions.

Wireless industry makes anti-theft commitment

A trade group for wireless providers said Tuesday that the biggest mobile device manufacturers and carriers will soon put anti-theft tools on the gadgets to try to deter rampant smartphone theft.

Making 'bucky-balls' in spin-out's sights

(Phys.org) —A new Oxford spin-out firm is targeting the difficult challenge of manufacturing fullerenes, known as 'bucky-balls' because of their spherical shape, a type of carbon nanomaterial which, like ...

Gene removal could have implications beyond plant science

(Phys.org) —For thousands of years humans have been tinkering with plant genetics, even when they didn't realize that is what they were doing, in an effort to make stronger, healthier crops that endured climates better, ...