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Times Co. Posts Loss, Hurt by Sale of Boston Globe (NYT)
The New York Times Company reported a quarterly loss on Thursday, attributable in large part, the company said, to expenses related to the sale of the New England Media Group, which included The Boston Globe and some pension expenses. But analysts said the results were still positive because the company closed the chapter on selling off its portfolio of tangential assets and shifted its focus to its more profitable core product, journalism by The New York Times, its website and the International New York Times, formerly known as The International Herald Tribune. TheWrap The company posted a loss of $24 million, or 16 cents per share, for the three month period ending in October, compared with a gain of $2.7 million or two cents a share in the same period a year ago. Total revenues increased 1.8 percent to $361.7 million, up from $355 million the previous year. That was slightly less than the $417.3 million in revenues Wall Street had projected. Cost cutting paid off at the newspaper company, as operating profit rose to $12.9 million, compared with $8.9 million in the same period a year ago. Bloomberg The publisher now relies more on readers than advertisers for its revenue, and CEO Mark Thompson is working to meet new demand by creating tiered packages of content at different prices. Reuters More troubling is the decrease in digital advertising, once touted as an area of growth as print sales wither. In the third quarter, digital advertising fell 3.4 percent while print ad revenue dropped 1.6 percent. The turn in digital ad sales has to do with the rise of advertising exchanges, which puts pressure on prices. Capital New York The New York Times‘ sales team got a vote of confidence from Thompson, just two days after a report that the paper of record’s sales reps are struggling. On a conference call with Wall Street analysts Thursday morning, Thompson touted Meredith Kopit Levien, the Times‘ new executive vice president of advertising, who “has already begun to make an impact on the structure and organization of our sales team,” he said.