New York Times publisher warns of losses

The publisher of the New York Times warned Wednesday that it would slip into the red for the third quarter because advertising revenue was falling short of expectations, both on the internet and for its print editions. Shares in the New York Times Company (NYTC) dropped by more than 5 percent on Wall Street following the gloomy update, delivered by chief executive Janet Robinson at a media conference hosted by Goldman Sachs in New York. The NYTC’s bearish news is likely to heighten fears that the media industry is struggling to pull out of a long advertising recession, amid signs that America’s broader economic recovery is stalling. The company owns the New York Times, the Boston Globe, the International Herald Tribune and 15 regional US newspapers, plus dozens of websites. It said its total revenue was likely to fall by 2 percent to 3 percent over the three months to September, compared to the same period last year, as a 14 percent rise in digital advertising failed to compensate for its weakening newsprint editions. Analysts had forecast a 1 percent revenue decline. The digital revenue increase was slightly short of its previous guidance of growth in the “mid to high teens”. Meanwhile, both print advertising revenue and circulation income were likely to fall by 5 percent, the company predicted

http://www.guardian.co.uk/media/2010/sep/22/new-york-times-company-loss

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