February 4, 2012
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.
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.