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N.Y. Times Co. Posts Sharply Lower Profits

Oct 19, 2005  •  Post A Comment

The New York Times Co. reported Wednesday that its third-quarter profit sank 52 percent, hurt by charges related to staff reductions at its newspapers and expenses related to its stock-based compensation program.

The company, which owns eight network-affiliated television stations and is in the process of acquiring a ninth, posted a third-quarter profit of $23.1 million, versus a year-earlier figure of $48.3 million.

Revenue grew 2.2 percent to $791.1 million, driven by the company’s recently purchased Web site About.com.

Faced with a sharp drop in political advertising and the absence of the Olympics in the 2005 third quarter, the broadcast group recorded a 5.4 percent decline in revenue to $33.3 million, beating several analysts’ projections of a steeper decline. The company attributed the smaller-than-expected drop to gains in automotive, entertainment and financial services advertising.

Operating profit at the broadcast division fell to $5.7 million from $8.5 million a year ago, largely due to the absence of political advertising and the Olympics.