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NY Times Co. Profits Plummet; Dec. Internet Ad Revenues Sink 12.3%

The New York Times Co. profit plummeted 48% in the fourth quarter; however, results were above analyst expectations, sending stock prices higher in mid-day trading.

The company reported Q4 net income of $27.6 million, or 19 cents a share, compared with $53 million, or 37 cents a share, in the fourth quarter 2007, writes MarketWatch. Fourth quarter revenue fell 11%, to $772 million.

For the year, internet advertising at News Media Group, the group that publishes The New York Times and The Boston Globe, were up 8.7%. However, in the fourth quarter, internet advertising revenues fell 3.2%, and they fell 12.3% in December alone.Advertising revenue at the company’s About Group fell 13.2% in December on declines in display and CPC advertising, according to paidContent.

“The disruptions of the global economy are affecting all businesses and industries, especially companies, such as ours, that generate a significant portion of their revenues from advertising,” Janet L. Robinson, president and CEO, said in a statement. “In this time of unprecedented change, we are responding strategically and creatively to manage our businesses and prepare for our future, while preserving the flexibility to navigate this difficult period.”

Looking ahead, Robinson said the company believes advertisers will continue to be cautious with their budgets, particularly in the early part of the year. To date, the company’s decline in print ad revenue has accelerated from what was seen in December, while that of digital is similar to last month.

The New York Times Co. is struggling to devise ways to pay down debt that comes due later this year and next. It is in advanced talks to sell 19 of the floors it owns in its Manhattan headquarters; a recent deal with the world’s second wealthiest man, Carlos Slim Helu, will bring in $250 million.