By: (AP) The New York Times Co., buoyed by healthy gains in advertising revenue, posted a 45% profit increase in the fourth quarter, beating Wall Street projections.
The company, which owns
The New York Times,
The Boston Globe and 16 other newspapers, as well as radio, TV and Internet holdings, said Tuesday that it posted profits of $107.5 million, or 69 cents per share, for the three months ended Dec. 31 versus $74.08 million, or 48 cents per share, in the year-ago period.
Revenue rose to $840.2 million from $780.6 million in the year-ago period.
The earnings results included a $5.9 million pre-tax charge related to work force reductions and a $10.7 million in amortization expenses.
Excluding these charges, earnings were $106.7 million, or 69 cents per share. Analysts polled by Thomson First Call expected 67 cents per share.
"The year had a strong finish, with earnings improving significantly in the fourth quarter as a result of robust revenue growth across all of our business divisions," said Russell T. Lewis, president and chief executive, in a statement.
He added that advertising revenue, which increased 10.1%, continued to strengthen in the quarter. Circulation revenue growth remained strong at the newspaper group, while the company's broadcast stations registered a record level of political advertising, he said. The company's New York Times Digital division recorded its first full year of operating profitability.
The Times reported that newspaper group revenue grew 6.5%in the fourth quarter to $776.5 million from $729.1 million in the year-ago period. Advertising revenue gained 8.4% to $519.3 million, from $478.9 million a year ago, as a result of higher advertising rates and volume.
Circulation revenue increased 4.7% to $207.8 million in the period from $198.5 million a year ago, primarily as a result of higher prices at
The New York Times and
The Boston Globe.
Total costs and expenses in the fourth quarter decreased slightly to $648 million from $650.2 million in the year-ago period.
The company projects that earnings per share for the year will increase anywhere from the mid-single digits to low double digits.
For 2002, net income was $299.7 million, or $1.94 per share, compared with $444.7 million, or $2.78 per share. Revenue was $3.08 billion, compared with $3.02 billion a year ago.
Shares of The Times rose 41 cents to $46.81 in late morning trading on New York Stock Exchange.
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