N.Y. Times Co. Q2 Revenue Down
July 23, 2008 at 7:29 AM (PT)
The NEW YORK TIMES CO. second quarter total revenues fell 6% to $741.9 million, with ad revenues off 10.6% while circulation revenues at the company's newspapers rose 2.5%. Earnings per share were flat at 15 cents, although last year's earnings were reduced 14 cents per share by one-time special items. Operating profit fell from $43.3 million to $40.3 million. The company does not break out figures for its only radio property, Classical WQXR/NEW YORK.
"During the quarter, we saw the continued effect on our businesses of the U.S. economic slowdown and secular forces playing out across the media industry," said Pres./CEO JANET L. ROBINSON. "Print advertising continued to soften during the quarter, particularly in the classified areas. At the same time, circulation revenues rose 2.5 percent to a second-quarter record of $224 million. Continuing our digital transition, online revenues increased about 13 percent as a result of strong display advertising, which benefited from the new digital ad formats we introduced.
"Our operating costs decreased 2.1% as we continued our drive to lower costs. Excluding depreciation and amortization and buyouts, operating costs declined 3.6 percent. Given the economic downturn, we are accelerating our cost reduction efforts. We are now on track to exceed our previous plan to lower our 2007 cash cost base by $130 million in 2008, and a total of $230 million by the end of 2009, excluding the effects of inflation, buyout costs and one-time costs.
"To date in JULY, we have seen the effects of the deepening economic slowdown, particularly in categories sensitive to the price of oil - airlines, hotels and autos, and we expect that will continue for some time. Despite the cyclical and secular issues facing the industry and our company, we believe our strategy will provide value to our shareholders over the longer term. In this challenging time, we remain strongly focused on introducing new products in print and online, building our research and development capability, driving down costs and rebalancing our portfolio of businesses."