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NYT Buries Article Detailing Record Losses

A discreet article from the New York Times:

Times Co. Reports Loss of $74 Million


April 22, 2009

The New York Times Company reported a first-quarter loss of $74.5 million on Tuesday, compared with a loss of $335,000 in the period a year ago, as it joined the roster of newspaper companies recording the steepest advertising declines in generations.

Advertising revenue at the company’s publishing segment fell 28.4 percent in the quarter, including an 8 percent decline in Internet advertising at the News Media Group. The worst drop, 31.6 percent, hit the New England Media Group, which consists primarily of The Boston Globe and its site, Boston.com. The company has told unions at The Globe that the paper is on track to lose $85 million this year, and that unless deep cuts are made, the paper will be sold or closed.

Internet businesses accounted for 12.8 percent of the company’s revenue compared with 11.1 percent in the first quarter a year ago.

Other publishers have seen similar declines in newspaper ad revenue in the first quarter, the sharpest drop since the Depression, and far worse than analysts predicted just a few months ago.

The Times Company’s total revenue of $609 million, down 18.6 percent from $747.9 million in the first quarter a year ago, fell more than $20 million short of analysts’ projections.

Newspaper circulation revenue recorded a slight gain, following price increases. And the company’s About Group, a collection of Internet businesses that includes About.com, saw a 4.7 percent drop in revenue.

In a statement, the chief executive, Janet L. Robinson, said that the company would fare better in the rest of 2009, in part because of aggressive cost-cutting. The company recently closed its City and Suburban distribution subsidiary, in addition to making cuts in its continuing operations.

“This quarter our operating costs declined 9.5 percent,” Ms. Robinson said. Excluding non-cash items and special charges like severance costs, she said, operating profit for the rest of the year “will improve relative to this quarter.” …

As part of the cost cutting, The Times recently announced plans to eliminate several weekly sections of the paper. In addition, the salaries of nonunion managers were cut 5 percent for the rest of the year, and members of the Newspaper Guild were asked to accept a similar cut.

On a per-share basis, the company’s first-quarter loss was 52 cents a share. Excluding one-time special items, the loss was 35 cents

One does wonder why this article was buried in the ‘Media & Advertising’ section of The Times, instead of on its front page.

Isn’t it news that would be of vital interest to its readers, especially since they have assured us that the country needs the New York Times now more than ever?

But of course the New York Times saves its front page for bad news for our country. Even if they have to make it up.

[T]he salaries of nonunion managers were cut 5 percent for the rest of the year, and members of the Newspaper Guild were asked to accept a similar cut.

This “request” to the unions was made quite some time ago. Notice that they have not yet agreed to take a cut.

Oh, and lest we forget, as we have previously noted, the New York Times CEO, Ms. Robinson just received a nice little $5.8 million bonus for her good work.

This article was posted by Steve on Tuesday, April 21st, 2009. Comments are currently closed.

5 Responses to “NYT Buries Article Detailing Record Losses”

  1. proreason says:

    Where are the outraged demands to tax the $5.8 million bonus at 90%.

    When will our beloved government officials provide pitchforks to the peasantry to protest such a humongous unearned bonus when the underlying business is failing so desperately?

  2. pdsand says:

    With such an operating loss, I wonder why the Times would have the audacity to waste money advertising on my television.

  3. wirenut says:

    Never underestimate the power of prayer . Deceit has it’s own rewards .

  4. heykev says:

    “New York Times CEO, Ms. Robinson just received a nice little $5.8 million bonus for her good work”

    Where is the outrage for such a bonus when the company is teetering on bankruptcy? Why doesn’t she take $1 for her services and forgo any bonus since the company is in such trouble? Why isn’t the Board of Directors indicted for malfeasance for awarding her this?

    Guess they have not learned that cheerleading America’s destruction and agenda reporting while being unamerican also does not provide readers willing to part their hard earned money.

  5. Lisa22 says:

    And after paying all its debts off, the NY Times will have only $34 million left! Sink, Gray Lady, sink!!

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