The New York Times Company (NYT, Financial) filed Quarterly Report for the period ended 2010-09-26.
The New York Times Company has a market cap of $1.1 billion; its shares were traded at around $7.63 with a P/E ratio of 10.4 and P/S ratio of 0.5. NYT is in the portfolios of Irving Kahn of Kahn Brothers & Company Inc., Brian Rogers of T Rowe Price Equity Income Fund, Bruce Kovner of Caxton Associates, Paul Tudor Jones of The Tudor Group, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors, Jeremy Grantham of GMO LLC.
Although we experienced marketplace volatility, advertisers sustained their spending levels across our products with total advertising revenues declining slightly by 1.0% in the third quarter of 2010 compared with the same period in 2009. Third-quarter revenue trends in print advertising held steady with the progress made in the second quarter, improving from a 12.3% decline in the first quarter of 2010. In addition, increased digital advertising revenues, which rose 14.6%, partially offset the 5.8% decrease in print advertising revenues in the third quarter of 2010. For the first nine months of 2010, an increase of 18.1% in digital advertising revenues partially offset an 8.2% decline in print advertising revenues. The newspaper industry remains affected by the secular shift to digital media choices. Online advertising revenues have become a much more significant part of our revenue mix, making up approximately 26% of our advertising revenues in the first nine months of 2010, up from about 22% in the same period in 2009. Based on results in the first half of October 2010, we expect fourth-quarter revenue trends for print advertising to improve modestly from the levels of the third quarter of 2010, while we expect digital advertising to increase approximately 10%.
Circulation revenues decreased 4.8% in the third quarter of 2010 compared with the third quarter of 2009, primarily due to a decline in copies sold across the News Media Group. For the first nine months of 2010, circulation revenues were flat compared with the same period in 2009 as we cycled past the June 2009 price increases at The Times and the Globe. Similar to the third quarter, we expect circulation revenues to decrease between 4% and 5% in the fourth quarter of 2010. Looking ahead, we will continue to evaluate our circulation pricing in coordination with our overall multiplatform strategy.
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The New York Times Company has a market cap of $1.1 billion; its shares were traded at around $7.63 with a P/E ratio of 10.4 and P/S ratio of 0.5. NYT is in the portfolios of Irving Kahn of Kahn Brothers & Company Inc., Brian Rogers of T Rowe Price Equity Income Fund, Bruce Kovner of Caxton Associates, Paul Tudor Jones of The Tudor Group, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:
About Group (consisting of About.com, ConsumerSearch.com, UCompareHealthCare.com and CalorieCount.com, and related businesses). The About Group generates revenues through cost-per-click advertising (sponsored links for which the About Group is paid when a user clicks on the ad), display advertising and e-commerce (including sales lead generation). Almost all of its revenues (95% in the first nine months of 2010) are derived from the sale of cost-per-click and display advertising. Cost-per-click advertising accounted for 58% of the About Groups total advertising revenues in the first nine months of 2010. The About Groups main operating costs are employee-related costs and content and hosting costs.Although we experienced marketplace volatility, advertisers sustained their spending levels across our products with total advertising revenues declining slightly by 1.0% in the third quarter of 2010 compared with the same period in 2009. Third-quarter revenue trends in print advertising held steady with the progress made in the second quarter, improving from a 12.3% decline in the first quarter of 2010. In addition, increased digital advertising revenues, which rose 14.6%, partially offset the 5.8% decrease in print advertising revenues in the third quarter of 2010. For the first nine months of 2010, an increase of 18.1% in digital advertising revenues partially offset an 8.2% decline in print advertising revenues. The newspaper industry remains affected by the secular shift to digital media choices. Online advertising revenues have become a much more significant part of our revenue mix, making up approximately 26% of our advertising revenues in the first nine months of 2010, up from about 22% in the same period in 2009. Based on results in the first half of October 2010, we expect fourth-quarter revenue trends for print advertising to improve modestly from the levels of the third quarter of 2010, while we expect digital advertising to increase approximately 10%.
Circulation revenues decreased 4.8% in the third quarter of 2010 compared with the third quarter of 2009, primarily due to a decline in copies sold across the News Media Group. For the first nine months of 2010, circulation revenues were flat compared with the same period in 2009 as we cycled past the June 2009 price increases at The Times and the Globe. Similar to the third quarter, we expect circulation revenues to decrease between 4% and 5% in the fourth quarter of 2010. Looking ahead, we will continue to evaluate our circulation pricing in coordination with our overall multiplatform strategy.
Read the The complete Report
