The company expects its print advertising revenue to fall about 25% in the current quarter compared with the same period last year, according to President-CEO Janet L. Robinson. However, digital advertising is anticipated to increase 10% and circulation revenue to be up 2%.
“The Times Co. continues to restructure for the future. With our many initiatives to operate more efficiently and effectively across our businesses, our cost performance has remained strong; and we are on track to achieve approximately $475 million in savings this year. And we have made significant progress in reducing our debt level, with total debt expected to be approximately $800 million at year-end, including well below $50 million under our revolving credit facility, down from $1.1 billion at the end of 2008,” Robinson said in a statement.
Dave Novosel, analyst at Gimme Credit, offered this assessment of the New York Times Co. in a report issued Tuesday: “Revenue and margins are declining in a weak advertising environment. Much of the problem is secular as opposed to cyclical, suggesting a rebound will prove challenging.”