New York Times Sees 25% Decline In Q4 Print, Advt. Revenue - Update

(RTTNews) - Tuesday, diversified media company New York Times Co (NYT.N) said it expects a decline in fourth quarter print and advertising revenue, in view of challenging market conditions. Meanwhile, the company looks ahead to a strengthening of digital advertisements and growth in online advertising revenue. Further, New York Times provided updates for the fiscal 2009.

The New York-based news provider said that it expects fourth quarter print advertising revenues to drop approximately 25% while total online advertising revenues to rise approximately 10%. The company currently project circulation revenues to grow 2% for the quarter.

For the prior year fourth quarter, the company has reported a revenue of $742.25 million, while advertising revenue was $440.749 million. Circulation revenue for the previous year quarter was $233.668 million.

Further, for the full year 2009,the company expects $133 million of depreciation and amortization, including $6 million of accelerated depreciation for the consolidation of Boston Globe's printing plants. For 2010, depreciation and amortization is expected to be in the range of $125 million to $130 million.

Capital expenditures for 2009 is expected to range between $50 million to $55 million and $40 million to $50 million for 2010.

The New York Times said that it expects interest expense for 2009 to be $85 million and severance costs to be $50 million.

Janet Robinson, president and chief executive officer said,"With our many initiatives to operate more efficiently and effectively across our businesses, our cost performance has remained strong and we are on track to achieve approximately $475 million in savings this year. And we have made significant progress in reducing our debt level, with total debt expected to be approximately $800 million at year-end, including well below $50 million under our revolving credit facility, down from $1.1 billion at the end of 2008."

Worcester Telegram & Gazette and telegram.com, will remain a part of the New England Media Group and with a major restructuring of Boston Globe the company expect it to be a positive contributor for its performance in 2010, the New York Times noted.

The company said that it will discuss its business, strategies and management's outlook during the UBS 37th Annual Global Media & Communications Conference.

NYT is currently trading at $9.15, up $0.24 or 2.70% on the NYSE.

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by RTT Staff Writer

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