NYT Co. Reports Revenue, Profits Drop, Digital Subscriptions Increase

Feb 03, 2012

The New York Times (NYT) Co. released its earnings report for 4Q 2011, which did not reflect the company's recent sale of its Regional Media Group (worth $150 million plus tax benefits). Operating profit fell from $111.6 million in 4Q 2010 to $106.6 million. Revenues for this past quarter fell to $643 million, a 2.8% drop.

NYT Co.'s earnings were $0.39 per share -- slightly lower than the $0.41 analysts had predicted for the quarter. Revenue advertising fell for both print (7.8%) and digital (4.9%). Digital revenues at the company's New Media Group grew by 10% to $233.5 million, except for a drop in cost-per-click and display advertising for About.com.

However, NYT Co. saw a 20% increase in digital subscribers even with the expansion of paywalls across its properties: The year-end tally of total paid subscribers to digital subscription packages, e-readers, and replica editions of The Times and the International Herald Tribune stood at approximately 390,000; The Boston Globe equivalents had 16,000 paid subscribers.