Another miserable quarter for the New York Times (NYT), which couldn’t clear its revenue goal. Advertising revenue is down 11.8%. Things will continue to stink indefinitely, the paper says, because the economy is lousy, the ad climate is bleak … and it’s a newspaper company.
CEO Janet Robinson says that the last quarter was awful because of the “continued effect on our businesses of the U.S. economic slowdown and secular forces playing out across the media industry”. Still bad now, she says: “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.”
The goodish news: Internet ads continue to grow, and for this quarter, at least, have turned around a worrisome deceleration trend (the About.com unit, though, saw its growth slow). And some news that that will be interpreted differently by shareholders and employees: The company is stepping up its cost-cutting measures. It now expects to spend $40 to $50 million on buyouts this year, up from a previous target of $30 to $35 million.
Revenue: $742 million, down 6%, vs. $754 consensus
EPS: $0.15 vs. $0.22 consensus. Add back in 11 cents per share in buyout costs, and EPS is not-so awful 26 cents.
Operating profit: $40.3 million, down 7% y/y.
Digital: Ticking up, and reversing a deceleration trend — Internet revenues up 12.8% y/y vs. 11.6% growth last quarter. Internet ad sales are up 18.3% y/y; last quarter they were up 16%
About Group: Up 15.8%, to $28.6 million; last quarter the unit was up 25%