The New York Times Co. released its second quarter earnings today, posting a net income of $39.1 million compared to $21.1 million during the same quarter last year. Total revenues were down 20.2 percent to $585.4 million, with ad revenus seeing a 30.2 percent drop. However, the company managed to cut operating costs by 20 percent during the quarter and they plan to cut $450 million in costs throughout 2009.
Those operating costs were undoubtedly decreased through the significant cuts made at the Boston Globe, including consolidating printing facilities in Boston, decreasing compensation to non-union managers and renegotiating union contracts. Contracts renegotiated with a number of unions during the quarter brought $10 million in savings, while the recently approved contract with the paper’s largest union, the Boston Newspaper Guild, brought an additional $10 million in savings this month, CEO Janet Robinson said.
But in an earnings conference call today, Robinson said that the company was not commenting on whether it was looking to sell the Boston paper, noting that cost cutting measures and increased newsstand pricing had helped “put it on stronger financial footing.”
“The Globe is on a path to a more secure financial future,” Robinson said. “We are deeply grateful to all of our colleagues in Boston, both union and non-union, for the sacrifices they have made.”
Robinson did note that the Times Co. is in the midst of selling its stake in the Boston Red Sox, a sale she said should be completed by the end of the year. Another thing to keep an eye on: Robinson said the company is currently researching new models for increasing its digital revenue stream. Currently, they’re looking at metered and membership models, she said.