Skip to comments.Times Company Profit Falls on Weak Ad Revenue (NY Times)
Posted on 04/21/2011 7:40:35 AM PDT by jalisco555
The New York Times Company reported a sharp drop in net income in the first quarter as the print advertising market remained stubbornly depressed for newspapers.
The company said net income fell 57.6 percent to $5.4 million, compared with $12.8 million in the quarter a year ago.
The weakness in print advertising, coupled with an unexpected drop in revenue at About.com, led to earnings of 4 cents a share before special items are excluded, compared with 8 cents a share in the period a year ago.
Revenue for the quarter dropped 3.6 percent to $566.5 million. Total advertising revenue declined 4.4 percent, but the performance by advertising sector varied widely. At The New York Times Media Group, which includes the namesake paper, NYTimes.com and The International Herald Tribune, the decline was 1.9 percent.
Digital advertising across the company grew 4.5 percent. As a percentage of the companys total advertising revenue, digital was 28 percent, up from 25.6 percent a year earlier.
At the New England Media Group, which includes The Boston Globe, advertising revenue fell 5.1 percent. At the Regional Media Group, which includes local newspapers from Florida to California, the decline was 9.7 percent.
(Excerpt) Read more at nytimes.com ...
Their new pay wall will save them. Just you wait!/ s
Wow, routinely offend half your potential customer base and the revenue drops. Who’d have believed it possible?
Pinch also announced that NY Times subscribers who make more than $1,000,000 per year henceforth will $10,000/year for their subscriptions. “They make a lot, they’ve been fortunate, so they won’t object to making to possible for the rest of the county to continue to be able to read the Times every day.”
if the Dems still ran Congress I’m sure we’d be looking at a publicly funded NPR for dinosaur print journalism by now
You bet. There was a lot of talk about it during the last Congress but they never got around to it. Hopefully they've missed their chance for good.
They still made a profit? Oh, fudge. That will only encourage them to keep trying.
Maybe next quarter.
Good Lord, how many more ‘steep drops in revenue’ can these guys take? Soros must be getting tired of bailing them out.
Obama open to newspaper bailout bill
Starve the beast!
A little while ago I came across a copy of the NY Times Sunday magazine and was amazed at how thin it was. In the old days there were pages and pages of ads for high-end real estate and fancy summer camps and boarding schools. Now nada.
Would someone please put a pillow over it’s head and suffocate it already!
NY Times net income fell 57.6 percent to $5.4 million, compared with $12.8 million in the quarter a year ago.
"...led to earnings of 4 cents a share BEFORE special items are EXCLUDED...."
I suspect it's even worse. I'm not going to waste my time digging into the numbers, but anyone remotely familiar with corporate accounting knows that including so-called "special items" ( usually translated as "one-time, non-recurring" are often used to cook the books, as long as the auditors are willing to sign off...which they usually do, unless it's blatantly egregious) could mean that the loss was far greater. It's the TREND LINE that the Times can't escape...
NYT revenue charts.
Really shows the trend down..Thanks...Also curious that the big spike UP last year occured about the same time that they were getting rid of Slim’s loan..they obviously “needed” good looking numbers for their new lenders. As I said..you can “juice” the numbers with “non-recurring” items for a year or two..if the auditors agree..but you can’t plug a hole with toilet paper..it falls apart soon.
While a great deal of the size and content shrinkage is no doubt due to the 'new media', I'd like to think that another significant reduction in the revenues to the newspaper publishers reflects their biased reporting and refusal to do investigative journalism the way they did in the past.
One percent return on revenue. Revenues dropping like a rock or the margin would be even smaller. Newsprint costs soaring; fortunately offset by a drop in circulation. Approximately 60 days operating expenses in cash, with that amount dropping at an annualized rate in excess of 20 percent. Credit lines tapped. Debt service coverage dismal.
I'd love to short their stock, and would too, if only they only weren't such a tempting takeover target to some not-too-bright over-endowed libtard with a hefty inheritance.
The entire company's net income is lower than that of a decent major league shortstop.
Ahhhh...the New York Times. Their new motto is WE SHOT OUR OWN FEET OFF AND NOW WE’RE GOING TO SHOOT OUR HANDS!
LOL - good one Jalisco - but it's worse. They also flip off lower class dems union guys, inner city blacks, and cross-the-border 'immigrants'. That leaves the New York Times with liberal elites - a group with much power and few members...
To sweeten the pot for advertisers, liberal elites are fashion conscience about consuming too much... besides how many car companies sell the Prius?
Layoff time again!
‘At the Regional Media Group, which includes local newspapers from Florida to California, the decline was 9.7 percent.’
My paper is one of the Times’s Florida vassals, and conservative Floridians are getting more resistant to he Times’ leftist spin. If they continue to lose money here. perhaps they will sell our papers to local more conservative owners.
I missed that. Are they completely out from under Slim, now? Who has the loan now?