New York Times Company Forecasts 30% Rise in Digital Revenue This Year

The New York Times Company said yesterday at a Bear Stearns media conference that it expects digital revenue to rise 30% to $350 million this year on the back of ad revenue at its websites, which include NYTimes.com and About.com. That figure would represent 10.6% of the nearly $3.3 billion in revenue forecast by analysts. Online revenue accounted for 8% ($273.9 million) of the company's overall revenue in 2006, twice its 2004 contribution. CEO Janet Robinson also expects improvement at the company's New England business. This includes the Boston Globe, which she says should stop seeing a negative impact from the closing of the Filene's department store by Q2. The company forecasts $65-75 million in cost savings in 2007 on staff scalebacks, plant closings and outsourcing. It has also hired management consultancy Bain & Co. to assist it in "revenue enhancement and cost reduction efforts."

Sources: MarketWatch, Reuters
Commentary: Print Media: Less Predictable Revenue Doesn't Mean It's Over • New York Times and Monster Worldwide Forge Strategic Alliance • Activist Targets After Yesterday's Sell-Off
Stocks to watch: The New York Times Company (NYT). Competitors: Dow Jones & Co. Inc. (DJ), Gannett Co., Inc. (GCI), The McClatchy Company (MNI), The Tribune Co. (TRB)

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