NYT Co. Expects to Spend More on Salaries, Newsprint, Paywall Promotional Campaign

As The New York Times Co. (NYT) reported its second-quarter earnings this morning, it also offered a modest glimpse into what’s in store for the coming six months.

The company said that year-over-year cost trends “will become more challenging in the second half of the year,” resulting in single-digit percentage increases in costs. The third quarter would account for much of the rising costs, the Times said, while the fourth quarter would be flat year over year. Factors influencing the rising costs include: increased cost of newsprint, “the elimination of certain salary rollbacks,” and ramped-up promotional spending as the company readies the launch of a paywall on its website.

Times Co. also projected the between $120 million and $125 million in depreciation and amortization; $85 million to $90 million in net interest expense; and $5 million to $10 million in income from joint ventures. The company also said it foresees a $16-million third-quarter writedown of assets at one of its Massachusetts printing facilities.

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