New York Time' internet revenues grow as print sales sag
05 Dec 2006
Mumbai: The New York Times Co. expects its revenue from internet-related business to grow 30 per cent in 2007 as it struggles to cut costs amidst falling circulation and advertisement revenues from the print media.
The media group expects revenues from its internet-related businesses, including About.com and NYTimes.com, to bring in about $270 million in revenue in 2006, increasing by another $80 million in 2007.
"The media marketplace has been challenging in 2006, and we expect it will continue to be next year," Janet Robinson, its chief executive, said in a statement. "We are continuing to rebalance our portfolio of properties and to exercise financial discipline as we allocate capital for the benefit of our shareholders," he added.
The Times expects an extra $40 million in income by the sale of New York radio station WQEW, which it plans to complete in the first quarter of 2007. It also plans to complete the sale of its broadcast media group in the first half of next year.
Another $12 million is expected to come from a hike in newsstand price of the Sunday Times and a four per cent increase in its home-delivery prices.
The Times, meanwhile, has become a target for acquisition as it share prices continued to lag. Former General Electric chairman Jack Welch and Boston advertising executive Jack Connors are part of a group interested in buying the Boston Globe, a part of the New York Times Co.
