NYT digital revenues rise despite heavy overall losses

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Despite net losses of $648 million, the New York Times Company (NYTCO) reported digital profits increased 35 per cent in the final quarter of the financial year compared with previous year's results.

The fourth quarter net loss equates to $4.50 per share, compared with a profit of $63.2 million, or $0.44 per share, in the same quarter last year.

This loss resulted from a non-cash charge of $5.11 per share for the write-down of intangible assets at the New England Media Group.

Excluding the write down, NYTCO would have increased 39 per cent to $87.9 million.

Internet revenue was up 35.3 per cent, in real terms, on the same period the previous year with internet revenue accounting for 9.1 per cent of NYTCO revenues, up from 6.7 per cent in the last quarter of 2005.

For the year, internet represented 8.3 per cent of the company's revenue compared with 6 per cent in 2005.

NYTCO projects income from the internet will hit $350 million in 2007, up approximately 30 per cent from $273.9 million in 2006 and $193.9 million in 2005.

"Once again our digital businesses showed excellent revenue growth - up approximately 35 per cent excluding the additional week - and made up 9 per cent of our revenues in the quarter," said Janet L Robinson, president and CEO.

"In its first full year under our ownership, About.com turned in an outstanding performance with revenue growth up an estimated 50 per cent excluding the additional week."