New York Times posts revenue growth
The Times Co., which owns The Boston Globe, International Herald Tribune and other newspapers in addition to the flagship New York Times, said revenue rose 1.2% in the second quarter to US$589.6 million over a year ago.
Net profit declined to US$32 million, or 21 cents per share, from US$39 million, or 27 cents per share, a year earlier when the media giant posted a large tax benefit.
"These positive results continued to build on the momentum of the past few quarters as the company was able to increase revenues and decrease operating costs," Times Co. president and chief executive Janet Robinson said.
Like other US newspaper groups, the Times Co. has been grappling with declining print advertising revenue, falling circulation and the migration of readers to free news on the Internet.
Times Co. revenue has been sliding for several years and fell 3.2% in the first quarter of the year and 11.5% in the previous quarter.
The Times Co. said digital advertising revenue rose 21.2% in the second quarter while print advertising revenue fell 6.1%. That was an improvement on the previous quarter when print ad revenue fell 12.3%.
"We experienced positive trending in both print and digital advertising revenues," Robinson said in a statement.
"Online advertising revenues have become a larger part of our mix and made up 26 percent of the company's total advertising revenues in the 2010 second quarter, up from 22 percent in the same prior-year period," she said.
Robinson said print advertising is expected to improve in the third quarter while digital advertising is expected to "trend in the mid to high teens."
She said the Times Co. is "well-positioned to thrive in the evolving media marketplace, thanks to the significant progress we are making in reinventing our enterprise.
"We will ensure The New York Times Company remains a dominant force in the media landscape," Robinson said.
The second-quarter results included a US$9.1-million gain from the sale of part of the Times Co.'s holdings in New England Sports Ventures, which includes the Boston Red Sox baseball team and their stadium, Fenway Park.
The Times Co. said it will continue to search for a buyer for all or part of its stake in New England Sports Ventures.
Times Co. shares were trading 3.65% higher in New York at US$9.3.
Source: AFP
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