Declines in advertising and circulation bring down New York Times Company's operating profit by 7.1% in fourth quarter of last year
Newspaper advertising remains in the doldrums and contributed to a 26.2% drop in income at the owner of the New York Times in the fourth quarter of last year, the media group announced.
Falls in advertising and circulation pulled revenues down 2.9% for the quarter. Operating profit fell by 7.1% to $146.4m (�90.7m) in the fourth quarter of 2010, compared with $157.6m in the same period of 2009.
Online advertising rose 11% and digital business accounted for 17% of the company's fourth-quarter revenue, up from 15% for the same period last year. But print advertising revenue dropped 7.2% from the fourth quarter of 2009. The fall followed a nearly 6% drop in print advertising in the previous quarter, but was a noticeable improvement on the 20% plunge a year earlier. Overall advertising revenue dropped 3.1% to $385.8m from $398m.
For 2010, operating profit excluding depreciation, amortisation, severance and special items increased 20% to $384.3m compared with $320.2m in 2009.
The New York Times Company's figures came after Gannett, owner of USA Today, reported a similar slowdown in advertising growth. Print advertising revenue declined by nearly 6% in the final three months of 2010 at Gannett, the US's largest newspaper group.
"The advertising marketplace was volatile during the quarter," said Janet Robinson, chief executive of the New York Times Company. "The progress we made on the print advertising front in October and November was not sustained in December."
The New York Times, which also owns the Boston Globe, has said it plans to introduce an internet paywall this year. Details have not been released but it is widely expected the paper will charge frequent readers for access to parts of the paper.
Source: http://www.guardian.co.uk/media/2011/feb/03/new-york-times-company-profits-fall
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