New York Times loses $40million in 2011



The New York Times Company suffered a net loss of almost $40million in 2011, with its fourth quarter profits falling by 12.2 per cent compared to the same period in 2010.

The company is grappling with sinking advertising revenue and a recent change in the top management after losing CEO Janet Robinson, who received a multimillion dollar severance package.

They said it continued to add subscribers for its digital products in the fourth quarter.

New York office: The company is grappling with sinking advertising revenue as more people go online for their news Loss: Janet Robinson, former president and chief executive officer of The New York Times Company, received a multimillion dollar severance package

The company's loss was blamed on the terminal decline in print advertising. The problems plaguing newspaper companies are well known.

Readers have ditched print for digital, causing circulation and advertising revenue to plummet.



The company, which rolled out an online pay system last year for digital subscribers, said paid digital subscribers of The Times and the International Herald Tribune rose 20 per cent from the third quarter to about 390,000.

The digital subscription strategy helped circulation revenue to grow five per cent to $241.6 million in the fourth quarter.

Chief Financial Officer James Follo said: 'We are confident that our plan to sustain momentum through the rollout of a series of new features, functions and content will enable us to steadily build our digital progress to date.'

The Times Company is also planning on selling more of its stake in the Boston Red Sox.

Online: The digital subscription strategy helped circulation revenue to grow five per cent to $241.6 million in the fourth quarter

They confirmed today they agreed to sell an additional part of its stake in Fenway Sports Group for $30 million, pending the approval of Major League Baseball.



Last July the company sold more than half its stake to three separate buyers for $117 million.

The Times Company also announced in December that it had agreed to sell its regional newspapers for $143 million to Halifax Media Holdings.

This sale is not reflected in the 2011 figures.

The company expects total advertising revenue trends in the first quarter to be similar to the fourth-quarter levels, and total circulation revenue to increase in the high-single digits.



Shares of the company, which have gained more than 30 percent in value in the last three months, were flat at $7.64 on Thursday afternoon on the New York Stock Exchange.