By: Lisa Singhania, AP Business Writer (AP) The New York Times Co., publisher of
The New York Times and
The Boston Globe, reported a solid increase in third-quarter earnings Thursday, as increases in circulation and advertising prices helped limit the effects of the economic slowdown.
Net income was $59 million, or 38 cents per share, for the quarter, compared with $43.8 million, or 28 cents per share a year ago. Adjusted to reflect new accounting standards adopted in 2002, the 2001 results were $53.1 million, or 33 cents per share.
The earnings were in line with the expectations of analysts surveyed by Thomson First Call, who had a consensus of 38 cents per share. The company also reiterated its forecast for the full year, of earnings per share of between $1.90 and $2.00. The consensus estimate at Thomson First Call is for $1.94.
In morning trading on the New York Stock Exchange, the media company's shares traded at $47.53 each, up $1.65, more than 3%.
"The economic climate remains challenging," said Russell T. Lewis, the company's president and chief executive. "However, we believe that our long-term cultivation of a uniquely broad and diverse set of advertising categories and clients, combined with our 'premium quality/premium pricing' circulation revenue strategy, will allow us to continue on our current growth trajectory."
Third-quarter revenues increased to $729.5 million, from $696.9 million a year ago. The media company primarily attributed the gains in its newspaper group to higher advertising rates. Higher subscription prices at the
Times and
Globe also helped boost revenues, as did a decrease in newsprint costs. Broadcast revenues benefited from increased political advertising and easier comparisons to 2001, when the company's stations ran commercial-free following the Sept. 11 attacks.
For the nine months ending Sept. 29, the company reported net income of $192.2 million, or $1.24 per share, compared with $370.6 million, or $2.29 per share. With the accounting adjustments adopted in 2002, the 2001 figure would be $398.3 million, or $2.46 per share. Revenues were nearly flat at $2.239 billion, compared to $2.235 billion a year ago.
The New York Times Co. publishes 18 newspapers, including its namesake and the
Globe. It also owns eight TV stations and two radio stations, as well as 40 Web sites, including NYTimes.com and Boston.com.
http://www.nytco.com/
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