NYTCo: Digital Ad Revenue Strong in Q4

A 30 percent increase in digital ad revenue didn't keep profits from plunging after a big staff reduction charge.

Ad sales on Web sites owned by The New York Times Company jumped 30 percent in 2005’s fourth quarter, but that didn’t keep profits from plunging 41 percent after a $35 million staff reduction charge.

Overall ad revenues rose more modestly, to 6.2 percent. Ad rates rose by 5 percent in 2005, and will do so again in 2006, executives said.

About.com, acquired in March 2005, continues to impress. The unit brought in $16.7 million in revenue for the quarter, and showed an operating profit of $5.2 million. For the full year, revenues came in at $52 million (of which $43.9 million went to the New York Times Company), compared with $36 million in 2004, when it was owned by Primedia.

In comments during the Q4 earnings call, CFO Leonard Forman described the purchase as having a “huge pay-off.” “Many people viewed our investment in About.com as a highly risky investment. We didn’t,” he said. “We continue to expect to see leverage on both rate and volume in 2006.”

The company expects the unit to post double-digit revenue and profit growth next year. It will increase ad rates for all digital media.

Additionally, the company used ad inventory on both NYTimes.com and About.com to cross-promote its own subscription services.

Earnings per share for The Times Company were $0.45, compared with $0.75 for the year-ago period, on profits of $64.8 million. Full-year profits dropped 11.2 percent, to $259.8 million.

Subscribe to get your daily business insights

Whitepapers

US Mobile Streaming Behavior
Whitepaper | Mobile

US Mobile Streaming Behavior

5y

US Mobile Streaming Behavior

Streaming has become a staple of US media-viewing habits. Streaming video, however, still comes with a variety of pesky frustrations that viewers are ...

View resource
Winning the Data Game: Digital Analytics Tactics for Media Groups
Whitepaper | Analyzing Customer Data

Winning the Data Game: Digital Analytics Tactics for Media Groups

5y

Winning the Data Game: Digital Analytics Tactics f...

Data is the lifeblood of so many companies today. You need more of it, all of which at higher quality, and all the meanwhile being compliant with data...

View resource
Learning to win the talent war: how digital marketing can develop its people
Whitepaper | Digital Marketing

Learning to win the talent war: how digital marketing can develop its peopl...

2y

Learning to win the talent war: how digital market...

This report documents the findings of a Fireside chat held by ClickZ in the first quarter of 2022. It provides expert insight on how companies can ret...

View resource
Engagement To Empowerment - Winning in Today's Experience Economy
Report | Digital Transformation

Engagement To Empowerment - Winning in Today's Experience Economy

1m

Engagement To Empowerment - Winning in Today's Exp...

Customers decide fast, influenced by only 2.5 touchpoints – globally! Make sure your brand shines in those critical moments. Read More...

View resource