New York Times Co. (NYT) Thursday reported a decline in profit for the fourth quarter, as revenues fell due mainly to lower advertising revenues and weak performance from About.com.
New York Times' fourth quarter net income attributable to shareholders dropped to $58.95 million or $0.39 per share from $67.14 million or $0.44 per share in the same quarter last year.
Excluding severance and the special items, earnings from continuing operations were $0.45 per share compared to $0.46 in the fourth quarter last year. On average, six analysts polled by Thomson Reuters currently estimate earnings of $0.41 per share for the quarter. Analysts estimates typically exclude one-time gains and losses.
New York Times, the publisher of its namesake newspaper, Boston Globe and the Telegram, said revenues for the quarter decreased 2.8 percent to $643.0 million from $661.7 million last year. Analysts on a consensus expected revenues of $646.39 million for the quarter.
Total advertising revenues fell 7.1 percent to $358.5 million. Nevertheless, a steady decline in revenues were partially offset by circulation revenues, which advanced 4.7 percent to 241.6 million.
Total News Media Group revenues decreased 1.5 percent to $616.8 million from $626.5 million, as digital advertising revenues increased 5.3 percent but only partially offset a 7.8 percent decrease in print advertising revenues.
The company's bottom line was mainly impacted by About Group's performance. About Group revenues decreased 25.9 percent to $26.1 million due mainly to declines in both cost-per-click and display advertising.
At fourth-quarter end, paid digital subscribers to The Times' digital subscription packages, e-readers and replica editions totaled about 406,000.
Operating costs decreased to $528.7 million from $550.0 million last year. Chief Executive Arthur Sulzberger said, "Operating costs declined 4 percent as we remained diligent in managing our expenses even while we have invested in our digital operations and high-quality news and information across the company."
Looking forward to the first quarter, the company expects total advertising revenue trends to be similar to the level experienced in the fourth quarter. The company expects total circulation revenues to increase in the high-single digits, and operating costs to increase in the low-single digits in the first quarter of 2012.
Times also noted that for the first quarter of 2012 it will record an after-tax gain of about $32 million related to the sale of its Regional Media Group, consisting of 16 regional newspapers, other print publications and related businesses, for $143 million in cash.
Times said it agreed to sell 100 of its remaining units in Fenway Sports Group, the holding company of Boston Red Sox and Liverpool FC, for $30 million, subject to approval from Major League Baseball.
NYT is currently trading on the NYSE at $7.65, down $0.03 or 0.33%, on a volume of 0.8 million shares.
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