NY Times profit soars on asset sales

Apr 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: Apple edges Samsung, retakes smartphone throne: survey

add to favorites email to friend print save as pdf

Related Stories

NY Times net profit declines in fourth quarter

Feb 02, 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.

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

Visa, MasterCard moving into mobile pay in Africa

14 hours ago

Americans may just be getting used to mobile pay, but consumers in many African countries have been paying with their phones for years. Now payment processors Visa and MasterCard want to get a slice of that market, and are ...

Wireless show highlights: Eyes on Apple, Blackberry

15 hours ago

As a major wireless show continues this week in Barcelona, Spain, Apple is highlighting the capabilities of its iPhone cameras with a gallery of photos taken by its users around the world.

Venture capitalist testifies in Silicon Valley sex-bias suit

22 hours ago

A prominent Silicon Valley venture capitalist who helped direct early investments in Google and Amazon said Tuesday during testimony in a high-profile sex discrimination lawsuit that his firm is not run by men and has many ...

User comments : 0

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.