The New York Times Co. (NYT) is announcing its first quarter earnings this Thursday, April 22, before the opening bell.
Join us here for live coverage of the earnings call with the company’s top executives, starting at 11 a.m.
All signs point to better ad revenues for the New York Times during this first quarter, after years of crumbling print revenue (Gannett’s earnings showed similar hope last week).
As the Associated Press points out, the Times Co.’s ad revenue plummeted by 27% during 2009’s first quarter.
Analysts expect earnings of 5 cents per share on revenue of $578.3 million.
More from the Associated Press:
NEW YORK (AP) — Newspaper publisher New York Times Co. is scheduled to report its first-quarter earnings before the stock market opens Thursday.
WHAT TO WATCH FOR: Signs of hope after several years of devastating declines in advertising revenue, the main source of income for the owner of The New York Times, The Boston Globe and 16 other daily newspapers.
The Times Co.’s results for the January-March period are expected to show a less severe drop than in the final three months of last year when ad revenue fell 15 per cent. The fourth-quarter erosion represented progress from the first nine months of 2009 when the publisher’s ad revenue declined by 28 per cent.
Some of the deceleration stems from more favourable yearly comparisons. For instance, the Times Co.’s ad revenue plunged by 27 per cent in last year’s first quarter, dramatically lowering the bar that the Times Co. must measure up to this year.
Another factor helping to ease the financial pain: an improving economy appears to be encouraging advertisers to spend more money after hunkering down through the worst of the recession last year.
The trend is helping to boost the ad revenue for some online and broadcast media, and giving newspapers a better chance to pull out of a slump that began four years ago.
Gannett Co. already has reported an 8 per cent decrease in first-quarter ad revenue at its more than 80 daily newspapers. That marked the company’s first single-digit decline in that category in more than a year.
WHY IT MATTERS: Like other newspaper publishers, the Times Co. has been jettisoning jobs to cope with the downturn. The cost cutting has helped boost profits, but has left newspapers with smaller staffs. The Times Co., for instance, eliminated 1,700 jobs, or about 18 per cent of its work force last year.
Management warned more workers might have to be offered early retirement packages or laid off unless revenue rebounds later this year.
WHAT’S EXPECTED: Analysts polled by Thomson Reuters expect earnings of 5 cents per share on revenue of $578.3 million.
LAST YEAR’S QUARTER: In the first quarter of 2009, the Times Co. lost $74.5 million, or 52 cents per share, on revenue of $609 million.
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