New York: The New York Times Company on Thursday
reported an 85 per cent surge in the second quarter profit to
USD 39.1 million benefiting from tax gain and lower severance
costs, even as falling advertisement revenues continued to
remain a concern.
The publisher of the well known New York Times newspaper
has raked in profits of USD 39.1 million on revenues of USD
584.5 million for the second quarter.
In the year-ago period, the entity had a profit of USD
21.1 million, it said in a statement today.
The better-than-expected second quarter performance came
from a huge tax gain of USD 37.7 million and a steep fall in
severance expenses as compared to the same period a year ago.
However, revenues slumped to USD 584.5 million as against
USD 741.9 million in the corresponding period a year ago. The
company said that advertising revenues decreased 30.2 per cent
in the second quarter.
In the latest quarter, the company had a tax benefit of
USD 37.7 million related to a change in estimate for income
taxes in the first half of 2009.
The company said severance costs stood at USD 1.7 million
in the second quarter of 2009 as compared to USD 27.6 million
in the year-ago period.
"While we continued to experience a very difficult
economic climate in the quarter as well as secular changes
affecting the entire media industry, we made significant
progress in decreasing our cost base and reducing and
restructuring our debt," Janet Robinson who is the President
and CEO of the company said.
"Advertising revenues decreased across all major
categories although the rate of decline lessened throughout
the quarter," Robinson added.
Bureau Report
First Published: Thursday, July 23, 2009, 23:59