The New York Times (NYT) cash crisis certainly didn’t improve in October:
- Ad revenue dropped 16% year over year, worse than September and one of the worst months to date (August was -18%).
- Online revenue in the news business grew only 5%, a major deceleration
- Circulation revenue increased 4%, thanks to a price increase
- Overall revenue down 9%
- About.com revenue decelerated massively, growing even less than in the news business: +3%. This is shocking. It’s especially bad news because About.com was one of the bright spots at the NYT.
The New York Times finally cut its dividend yesterday, which was a step in the right direction. It won’t be enough, however. The company faces a major cash crunch, with $400 million due in May. It needs to sell assets and make major cost cuts. Preferably soon, before it’s too late.
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