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Earnings: NYTCO 1Q: Profit, Revenue Down; Internet Revenue Up 21.6 Percent, ’07 Forecast Lowered

Lots of online info in today’s 1Q07 earnings report from the New York Times Company (NYSE: NYT) and not all of it is good. The company’s guidance for 2007 includes a warning not to expect 30 percent (mostly organic) growth in online revenue after all: “With internet advertising growing more slowly across the industry, the company expects that revenues from its internet-related businesses will be less than originally forecast for 2007.” Internet revenues across the company rose 21.6 percent in 1Q07 to $74.3 million from $61.1 million in 1Q06. (March online ad revenue rose 19.8 percent.) At the same time, the company said online revenue continues to account for a larger percentage of revenue — 9.5 percent in 1Q07 compared with 7.6 percent in the same quarter last year. (In her statement, CEO Janet Robinson said 10 percent.)

Looking at the bigger picture, profit dropped to $23.9 million or $0.17 per share from $32.4 million or $0.22 per share. (The company took a charge for staff reductions, among other items.) Revenues declined 1.6 percent to $786 million from $799 million in 1Q06.
Earnings | Webcast (11 a.m. eastern) | March

About.com: Revenues continue to climb, rising 23.8 percent to $22.5 million from $18.2 million last year; growth is attributed to higher revenue from display and cost-per-click advertising as well as e-commerce. Profit was up 20 percent to $8.3 million from $6.9 million. Costs rose 26.2 percent

Online contribution to “other”: Baseline StudioSystems and the growth in TimesSelect subscriptions contributed to a 3.8 percent increase in “other” revenue for the Media Group. Online ad increases helped offset print declines but overall advertising revenue was down 4.3 percent and total news media revenue decreased 2.2 percent.

TimesSelect: The March revenues report includes the first TimesSelect numbers since the move to free academic subscriptions: approximately 713,000 subs — with home delivery, 62 percent; online-only, 30 percent; academic, 8 percent.