Savings Experiment: Snow Removal
Bonds Are a 'Safe' Investment: A Big Lie Gets Even Bigger
Has management of New York Times Co. (NYSE: NYT) finally woken up and smelled the coffee? Not only did the third-largest newspaper publisher report awful earnings, but the New York-based company also announced that it might cut its dividend, a move that will hit the controlling Sulzberger-Ochs family where it hurts -- in the pocketbook.
Net income at the publisher of the namesake newspaper fell 51.4 percent to $6.52 million, or 5 cents a share, compared with $13.4 million, or 9 cents, a year earlier, the company said in a press release. Total revenues decreased 8.9 percent to $687.0 million from $754.4 million. Advertising revenue fell a whopping 14.4 percent as companies reduced marketing spending because of the uncertainty about the economy.
About the only bright spot was the company's Internet business, which posted a 6.7% revenue gain. But alas, it is far too small to make up for the shortfall in its print business. Remember, that despite all of their talk about the online world, newspapers still make most of their money as they have for centuries: by dead trees and ink. That explains why the Times is taking some pretty drastic actions.
In addition to reviewing its dividend, the company is reducing capital expenditures by about $80 million, writing down the assets of its New England Media Group by $100 million to $150 million, and looking for ways to further slash costs (perhaps additional layoffs). You can bet that the company is considering unloading both the Boston Globe newspaper and its stake in the Boston Red Sox.
Maybe this attention to cost-cutting was the result of its new investor Mexican billionaire Carlos Slim, who bought a 6.4% stake in the media company last month. Maybe its a sign of the growing influence of Harbinger Capital and Firebrand Partners hedge funds.
The Sulzberger family has been able to keep a stranglehold on the New York Times by controlling its Class B voting shares. That strategy has worked by keeping the villagers from storming the castle. Over time, the castle's defenses have gotten soft and the villagers have gotten smarter. Now, they have breached the fortress defenses and the lords of the manor are looking for any weapon to keep them at bay. There is only so long they can keep this up before surrendering to superior forces.
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
Reader Comments (Page 1 of 1)
10-23-2008 @ 8:36PM
Kvichak said...
Go times go!! I will sing at your funeral and will dance on your grave. You betrayed the public with your biased news reporting and the stories that you did report. You cannot be gone soon enough.
11-20-2008 @ 7:17AM
Muhammad Rizwan said...
Hello Sir/Madam,
Please i want to ask for your help to me. My name is Muhammad Rizwan & i am From Pakistan.So sir reason of writing you is to ask for your financial help.I want to start my own small business but i have not a money if you don't mind Please i needed your financial assistant.I am very Thankful to you.
Respectfully
Muhammad Rizwan
11-22-2008 @ 9:25AM
Robert DeVito said...
It appears The New York Times is heading down the same road of the N.Y. Journal American, The Daily Mirror and the N.Y. Herald Tribune. It appears the Times has such a liberal bias, the public has come to the realizatiion that instead of news reporting it has become a paper of left wing editorials. It caters to the bleeding hearts and real news if they choose to publish it, appears on page 28.