This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Web Ad Sales Help New York Times Co. Halt Declines


NEW YORK (AP) â¿¿ The New York Times Co. has managed to steady itself after more than two years of watching its main source of revenue â¿¿ newspaper advertising â¿¿ drop at an alarming rate.

And it has done so at least in part by tapping a force that has contributed much to its decline: the Web.

Second-quarter results, released Thursday, showed the Times Co.'s advertising revenue finally stopped falling as a 21 percent jump in digital ad sales canceled a 6 percent decline in print. Overall revenue grew about 1 percent because of subscription and newsstand price increases at the flagship newspaper and The Boston Globe, one of 16 other dailies the company owns.

It was the company's first revenue gain since 2007. And CEO Janet Robinson said the company expects the same advertising trends to continue in the third quarter.

That is not to say the Times Co. or the newspaper industry as a whole is in great shape. Print advertising still accounts for nearly three quarters of the company's total ad revenue, and it is still sliding. Overall ad revenue at the Globe and the Times Co.'s smaller regional dailies continued to fall in the second quarter.

Still, an increase in revenue from and other websites could help give the Times Co. some breathing room as it experiments with new initiatives such as mobile applications on smart phones and fees for reading news online.

"Digital really kicked in, and it's big enough now to really matter," Benchmark Co. analyst Edward Atorino said. "They've put a lot of muscle behind, and it's paying off."

The results gave Times Co. shares a modest boost Thursday. The stock closed up 11 cents, or 1.2 percent, to $9.16.

The company reported an 18 percent drop in net income compared with a year ago, when it recorded a big one-time tax gain. It earned $32 million, or 21 cents per share, in the latest quarter, down from $39.1 million, or 27 cents per share. Excluding one-time items, the company said earnings more than doubled to 18 cents per share from 8 cents.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
GCI $16.85 0.00%
LEE $2.14 0.00%
NYT $12.82 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs