The New York Times Co. projects fourth quarter print advertising revenues will drop 25 per cent over the same period a year ago, which is a slight improvement from the 30 per cent drop in the third quarter, The Wall Street Journal reports.
In addition, McClatchy Co., which publishes 30 daily newspapers including the Miami Herald and the Kansas City Star, said it expects ad revenues to “fall by somewhere in the low- to mid- 20% range, an improvement over the 28% in the third quarter.”
Both companies have laid off staff to cut costs and the Times recently announced plans to cut a further 100 jobs through volunteer buyouts and then, if necessary, layoffs to meet the 100-job goal.
“Despite the modest progress, the Times Co. is still struggling to find the balance that it will need. The amount of ad revenue its print editions are losing exceeds the total coming from Internet advertising….
“In the fourth quarter, for example, the Times Co. is bracing for a 25 percent drop in print advertising from the same time last year. That would translate into a roughly $97 million decline, to $290 million.
“Meanwhile, the owner of The New York Times, The Boston Globe and 16 other daily newspapers expects to reap $90 million from Internet ad sales in the fourth quarter. That is based on the Times‘ statement Tuesday that the company anticipates a 10 percent increase in online ad revenue.”