Internet Growth Walks Out On The New York Times (NYT)

If print advertising revenue had been down and Internet revenue up, there would have been some hope that The New York Times (NYT) was making a modestly successful transition online.

But, total Internet revenue decreased 5.6%to $78.2 million from $82.9 million and Internet advertising revenues declined 6.1% to $67.6 million from $72.0 million.

The company’s overall results were even worse because of a 27% decline in advertising revenue for the quarter. The entire NYT reported a first-quarter 2009 operating loss of $61.6 million compared with operating profit of $6.2 million in the first quarter of 2008.

Total revenues decreased 18.6%to $609.0 million from $747.9 million. The only saving grace was that the firm is still cutting costs. For the first quarter, operating costs decreased 9.5% to $654.3 million from $723.3 million.

In terms of the major properties in the company’s newspaper group, revenue at the New England group, which includes The Boston Global, fell 21% to $104 million on a 32% plunge in advertising revenue.

No wonder NYT wants to cut costs at The Globe, or fold it.

Douglas A. McIntyre