New York Times Posts Profit in Second Quarter

In conference call with investors today, The New York Times Company announced second quarter earnings of $23.3 million. That's down from $40.3 million from this time last year. Total revenue for the company—which owns The New York Times, The Boston Globe, The International Herald Tribune, and other smaller papers across the country as well as various internet holdings including About.com—was down 21.2 percent to $584.5 million, which the company attributes "primarily due to lower print and online advertising."

"While we continued to experience a very difficult economic climate in the quarter as well as secular changes affecting the entire media industry, we made significant progress in decreasing our cost base and reducing and restructuring our debt,” Janet Robinson, the Times Company president and CEO said in a release and reiterated to investors on the 35 minute long call. Those cost cutting measures include reaching a deal with the union representing many employees Boston Globe to cut salaries and the sale of classical music station WQXR and related assets for $45 million earlier this month. James Follo, SVP and CFO for the company also acknowledged salary cuts for employees as another cost-cutting measure undertaken.

Robinson refused to comment on whether or not The Globe, which lost $50 million last year, is for sale—something that's been widely speculated on for months. She did say the company is trying to sell its 17.7 percent holdings in New England Sports Ventures, LLC, owners of the Boston Red Sox. She said that moneys from these divestitures would go towards paying down the company's approximately $1 billion debt, which is set to mature in 2015.

As for plans to make more money at the flagship paper's Web site, Robinson said it was too soon to announce any pay schemes at this time. She did say the company is focusing on a "metered model" (think: an idling taxi's meter rolling up, up as you sit there) or a "membership model with special offerings" (think: totebags and invites to special events just like when NPR has a pledge drive). Denise Warren, general manager of nytimes.com was eager to point out that as far as online advertising goes, "We had a really, really robust quarter on the display area for NYTimes.com." Without supplying numbers, she said, "We are performing better than most of our competitors." She also boasted of maintaining and growing prices for ad placements but acknowledged a small dip in Q2.