"Get your hands off the Lektor."
Posted on 10/19/2006 8:16:01 AM PDT by Milhous
CHICAGO The New York Times Co. reported Thursday that its third-quarter 2006 profit from continuing operations plunged 39.2% on costs related to its job cuts and a loss on its sale of its 50% stake in the Discovery Times Channel.
Meanwhile, Belo, publisher of The Dallas Morning News, said net income for the quarter fell to $19.2 million, or 19 cents per share, compared to $22.1 million, or 20 cents per share, during the same period last year.
At the New York Times Co., 3Q operating profit was down 48% from the same period in 2005 to $20.5 million on total revenues that slipped 2.4% to $739.6 million.
Reflecting a continuing tough advertising environment, total ad revenue was off 4.2% to 465,476.
The Times Co. said it earned $14 million, or 10 cents per share, compared with $23.1 milion, or 16 cents per share, in the third quarter of 2005.
Charges related to the staff reduction and the cable TV investment loss each reduced per-share price by 3 cents.
"Our third-quarter results reflect the continued weakness in the print advertising marketplace," Times Co. President and CEO Janet L. Robinson said in a statement. "We are, however, strongly encouraged by the discipline our teams have shown in holding the line on operating costs, which were virtually flat with the third quarter of last year. The leadership we are showing in transitioning from our print-centric distribution model to become a multi-platform content provider continues to pay dividends through the robust growth in our Internet-related revenues, which contributed more than 8% of the company's revenues in the quarter and are on track to exceed $250 million by year end."
Times Co. noted that for this reporting period its broadcast media group are now classified as discontinued operations. In September, the company announced plans to sell the group.
Newsprint expense decreased 2.2% in the third quarter, with 11.1% of the decrease attributable to lower consumption, partially offset by an 8.9% price increase.
News Media Group revenues decreased 3.0% to $721.3 million, the company said.
Advertising revenues decreased 5.1%, due to weakness in print advertising at The New York Times Media Group and the New England Media Group, partially offset by higher online advertising revenues across the News Media Group, the company said.
Circulation revenues were down 1.3%, which the company attributed mainly to weakness at the New England Media Group.
About.com's third-quarter revenues increased 29.3% to $18.3 million on higher display and cost-per-click advertising and e-commerce revenue. Operating profit for the online business increased to $6.4 million from $3.8 million.
All told, Internet-related businesses generated $62.8 million in revenue, up from $50.5 million in the year-ago period.
In the third quarter, the Times Co. repurchased 0.7 million Class A shares at a cost of $15.6 million. Approximately $108.2 million remained at the end of the third quarter from the Company's current share repurchase authorization.
At the end of the quarter, it said, the company's cash and cash equivalents were approximately $39 million, and total debt was approximately $1.5 billion.
The Times said its previously announced plans to consolidate New York area printing at its College Point, N.Y., plan and to sublease its Edison, N.J. plan, is expected to be completed in the second quarter of 2008.
The Times said it expects a return of "at least 15%" on its $135 million investment in the consolidation, with a payback period of five and a half years. It said it currently estimates it will record total costs to close the Edison plan to be in the range of $104 to $128 million.
TimesSelect, the fee-based product on NYTimes.com, currently has 551,000 subscribers, the Times Co. said, with about 65% receiving TimesSelect as part their home-delivery subscriptions, and 35% receiving it from online-only subscriptions.
Since its launch in September 2005, TimesSelect has generated more than $8.5 million in revenues, the company said.
Newspaper and television station owner Belo Corp. said Thursday third-quarter profit dropped 13 percent weighed down by charges, as revenue edged up slightly amid weak results from the company's newspaper group.
Belo, publisher of The Dallas Morning News, said net income for the quarter fell to $19.2 million, or 19 cents per share, compared to $22.1 million, or 20 cents per share, during the same period last year.
Results for the latest quarter were hurt by $5.4 million, or 3 cents per share, in severance charges for a voluntary severance program at the Dallas Morning News. They were also impacted by $10 million, or 6 cents per share, in transition costs associated with its technology initiatives and $2.9 million, or 2 cents per share, in stock-based compensation costs.
Last year's results included a $3.5 million, or 2 cents per share, credit to network compensation and an impact of 4 cents per share from lost revenues and incremental expenses associated with Hurricanes Katrina and Rita.
Analysts polled by Thomson Financial were looking for third-quarter earnings of 18 cents per share.
Revenue gained 0.8 percent to $376.4 million from $373.4 million, missing analysts' estimates of $386.3 million. Television group revenue rose 6.9 percent, while newspaper group revenue fell 4.2 percent
"Get your hands off the Lektor."
It's probably more due to a decrease in the average size of the paper, which would be due (mostly) to a decrease in advertising. Since newspapers make most of their income from advertising, this is good news indeed.
Yes, right after I posted I thought the same. Fewer ads, less newsprint needed. But declining circulation, too, I think. They have expanded into all the easier markets, using electronic transmission and local printing plants, and Pinch's current and future expansion plans are pretty desperate.
Revenues down
Profits down
Loss on sale of stake in Discovery Chanel.
Next, the geniuses in top management will be building a new headquarters building.
Bobby had great talent, was good looking and I don't remember any scandals re him.
Thanks for the laugh and good memories.
"Luv yer shoes, Lotte..."
So, the newspaper of record continues to tank? Yer breakin' my heart here.
Don't forget 'newsweak' and korans/toilets....
Don't forget 'newsweak' and korans/toilets....
Whoa! How can this be? This make it sound like the NYT is a "big business???" Why would all those liberals care about money? Shoot, I'm sure if they made any money they'd just give it all away anyways.
Talk about killer styles.
Thanks Milhous
bwahahahahaha
I guess when they were reporting all that bad news about the economy they were talking about themselves,
they should follow their own economic advice,
just charge the wealthiest readers more for the paper and give it away to the poor
Sinking ship. Even rats know it's time to jump ship.
They recently redesigned the paper to a smaller dimension which probably accounts for much of the newsprint savings. I suspect loss of ad pages was a also big factor.
They're definitely raking water uphill.
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