Media major the New York Times Co’s net profit in the fourth quarter more than tripled, indicating a slowdown in advertising declines and increase in circulation revenue.The bottom line was also helped by cost-cutting and lower pension costs.
The company, which publishes a number of well-known brands such as The New York Times, The Boston Globe, the International Herald Tribune and 15 other daily newspapers, reported a 14.7 percent fall in ad revenues compared with a year ago, an improvement on the 26.9 percent decline seen in the third quarter.
Its newspapers saw a 20 percent advt decline, but internet advertising grew 10.6 percent after a year of decline. That helped the Times Co earn $90.9 million, or 61 cent per share. Excluding exceptionals, earnings came in at a better than expected 44 cent per share.
In the fourth quarter of 2009, the net income was $27.7 million.Times Co. chief executive Janet Robinson said the environment remains challenging but noted signs of a recovery. Advertisers spent more across the company’s newspapers and websites in the fourth quarter, she said, and the trend appears to continue going into 2010.
Companywide, circulation revenue rose 2.4 percent, to $239.3 million, as The New York Times raised subscription and newsstand prices as well.“This growth demonstrates the strong demand and loyalty for our high quality news and information in print, even as the content marketplace becomes increasingly digital,’’ Robinson said.
Cost cuts of $475 million helped results in 2009, and Robinson said the company was “focusing relentlessly’’ on efficiency. The Times Co. reduced its debt by $290 million, to $769 million.