NY Times profit soars on asset sales

April 19, 2012
The New York Times Co. said Thursday that first-quarter profit jumped sevenfold
The New York Times Co. said Thursday that first-quarter profit jumped sevenfold, boosted largely by the sale of its regional newspapers and shares in a New England sports group.

The New York Times Co. said Thursday that first-quarter profit jumped sevenfold, boosted largely by the sale of its regional newspapers and shares in a New England sports group.

The company, which owns The Boston Globe, International Herald Tribune and About.com in addition to the flagship newspaper The , reported net income of $42.1 million, or 28 cents a share, in the first quarter of the year.

That compared with the year-ago period's profit of $5.4 million, or four cents a share.

Almost 70 percent of the first-quarter profit resulted from the January sale of Regional Media Group, which groups 16 newspapers. The sale brought in $140 million in cash.

Revenue slipped 0.3 percent in the first quarter, to $499.4 million, under pressure from a steep 23.1 percent drop in sales in its About Group online business.

The company's News Media Group saw revenue increase by 1.3 percent.

fell 8.1 percent, while circulation increased 9.7 percent.

"The uneven US economic environment and uncertain global conditions continued to present challenges to the advertising marketplace," said Arthur Sulzberger, chairman and chief executive, in a statement.

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.

The Times began charging in March 2011 for full access to NYTimes.com and it launched a subscription-only website for the Boston Globe in October.

Sulzberger noted that revenues at the News Media Group were under pressure in the first two months of the year, resulting in a decline of 2.0 percent for the first quarter.

But he stressed the company's digital strategy, which has expanded the subscription base, was paying off.

Sulzberger said that paid subscriptions to all of the company's digital packages, e-readers and replica editions totaled roughly 472,000 as of March 18.

"This confirms once again the validity of our digital strategy, which has provided a successful model for the industry. Our readers have embraced digital subscriptions and we expect to build on this strong start as we embark on our second year of digital paid subscriptions."

Investors welcomed the quarterly results, pushing shares up 5.4 percent to $6.44 in opening New York trade.

Explore further: New York Times net profit dips 26 percent

Related Stories

New York Times net profit dips 26 percent

February 3, 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.

Over 100,000 paid subscribers for NYTimes.com

April 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.

New York Times suffers quarterly loss

July 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.

NY Times net profit declines in fourth quarter

February 2, 2012

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.

Recommended for you

Facebook ready to test giant drone for Internet service

July 30, 2015

Facebook says it will begin test flights later this year for a solar-powered drone with a wingspan as big as a Boeing 737, in the next stage of its campaign to deliver Internet connectivity to remote parts of the world.

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.