[September 22 2010]
The New York Times Co. said today it expects to show a loss for the third quarter, with newspaper advertising still in decline. Unlike the prior quarter, the Times Co. said that growth in digital ad sales will not make up for declines on the print side. Making matters worse, the company expects a drop in revenue from subscription and newsstand sales.
All of which adds urgency to the companys efforts to find greater sources of revenue outside of printed newspapers. Its flagship daily is set to impose fees for accessing material on its website, NYTimes.com, beginning early next year. And the company has been working to expand its audience on mobile gadgets like the iPad, where it also hopes to find both subscription and advertising revenue.
The Times Co., which also publishes The Boston Globe, International Herald Tribune and 15 other dailies, expects an overall revenue decline for the third quarter of 2 percent to 3 percent. Counting severance costs and one-time accounting adjustments, the company said that should lead to a loss of 5 cents to 7 cents per share. Stripping out items, it expects to earn 3 cents to 5 cents, which is roughly in line with analysts expectations, according to Thomson Reuters.