New York Times Co. Narrows Loss, Ad Slump Lingers

MICHAEL LIEDTKE

The New York Times Co. cushioned the blow from another big drop in advertising in its latest quarter by shedding more payroll and collecting more money from newspaper subscribers.

The strategy paid off with a third-quarter loss that was smaller than analysts anticipated Thursday. Times Co. shares surged $1.97, more than 22 percent, to close at $10.72.

But cutting costs and raising newspaper prices probably isn't a formula for long-term success. Like other publishers, the Times Co. is trying to hold on until advertisers increase their spending again.

It didn't happen in the third quarter for the owner of The New York Times, The Boston Globe, The International Herald-Tribune and 15 other daily newspapers. The Times Co.'s advertising revenue plunged 27 percent from last year's July-September period.

The erosion wasn't as bad as the 30 percent drop in ad revenue during the second quarter. But the annual comparisons are getting easier as the year progresses, given that the recession worsened with the financial crisis in late 2008.

Janet Robinson, the Times Co.'s chief executive, said the advertising environment has "improved modestly" this month, with online marketing showing the most momentum. Those remarks echoed recent comments from the CEOs of two other major newspaper publishers, Gannett Co. and McClatchy Co.