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Media

The New York Times (NYT) Plays Dead: Its Newspapers Are Losing Money

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By Douglas A. McIntyre Updated Published
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Newspaper_2Not a living soul expected The New York Times Company (NYT) to turn in good July results for its core newspaper group. The conventional wisdom was right about that. But, internet revenue for the newspapers was abysmal. The firm does not have anything else to rely on for growth

For July, revenues from continuing operations decreased 10.1% compared with the same month a year ago. Advertising revenues decreased 16.2% and circulation revenues decreased 0.5%. NYT only brought in $235 million in total revenue for the month.

At this point, the firm’s newspaper are probably losing money. In the last quarter, the newspaper division had a 6% margin on $713 million. NYT says that over 10% of that revenue comes from the internet. Back that out and operating income is negative.

Total internet revenues grew 2.6% for July and nternet advertising revenues increased 5.5%. Internet businesses include NYTimes.com, About.com, Boston.com and other Company Web sites. But, About.com had a revenue increase of 14.6% so revenue from the newspaper websites was close to flat compared to last year.

Once internet revenue is backed out, the New York Times newspaper group loses money now, and the flagship paper is not an exception

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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