The New York Times Co. reported a steep drop in third-quarter profits on Thursday, the latest gloomy earnings report in an industry battered by online competition and falling print advertising revenue.
The New York Times Co. said net profit fell by 51.4 percent in the third quarter to 6.5 million dollars, or five cents per share, from 13.4 million dollars, or nine cents per share, in the same period a year ago.
The company, which owns The Boston Globe, International Herald Tribune and 16 other daily newspapers besides the flagship The New York Times, said overall advertising revenue fell by 14.4 percent during the quarter.
Shortly after the release of its results, Standard & Poors said it was lowering the Times’s credit rating to “BB-,” or junk status, while Moody’s Investors Service said it was placing it on review for possible downgrade.
Moody’s changed the rating outlook for the company to negative from stable in July. A further downgrade would reduce it to junk status. Both companies said the moves were based on the uncertain outlook for newspaper advertising.
Print advertising revenue has been declining at newspapers across the United States as circulation drops, more readers go online for their news and advertisers shift their dollars to the Internet.
The New York Times’s share price rose slightly on Wall Street on Thursday, gaining 0.19 percent to close at 10.70 dollars, but was down 3.74 percent to 10.30 dollars in after-hours trading.
The Times said print advertising revenue fell by 18.5 percent in the third quarter while online revenue from NYTimes.com and other websites rose by 2.5 percent.
While print advertising revenue fell, online advertising revenue grew by 10.2 percent in the quarter to 74.4 million dollars, The New York Times said, and now accounts for 12.4 percent of revenue, up from 10.6 percent in the third quarter of 2007.
(Breitbart / AFP)
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12 Responses
Cry me a river.
Will they have a “going out of business” sale soon? I can hardly wait.
The “NY slimes” is an anti Israel paper!! Let them go outta business FAST!!!
Leftist leaning rag… too bad for them ha ha!
b’h, may this anti semitic, america hating communist rag go undr’bekorov mammesh speedily in our’ next few days
Let them go in the way of the horse & buggy. But before that maybe they should reduce the size of their paper to six inches.
Will the last one out (of the NYT building), please close the lights.
Know Nothings – You fellows are like non-frum Yidden who pontificate with deep seriousness about the Torah they never learned – The NYT remains the most comprehensive paper of record on all matter of issues, the vast majority having nothing to do with Israel or Yidden . . and calling a liberal paper Communist makes as much sense as a flaming liberal calling a conservative paper fascist. Get a life!
Hey Joseph – don’t forget our bet on the election, made publicly on YWN
Yonason — I most certainly have not. Have you spoken to your Rov yet?
The NYT is an organ of the Democrat Party, and its demise (should we be so fortunate) will not be mourned.
last time checked the nyt paper can be burned with biur chometz i spoke to my rov about it
joetheplumbe says “last time checked the nyt paper can be burned with biur chometz i spoke to my rov about it” Gee…what a chiddush!
Joseph – To date, alas, I have wimped out and have not asked my Rov…I think what he would tell me is something akin to better the bet should be a good dinner somewhere. Will try this Shabbos. A git Shabbos to you and yours.