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1 days and 21 hours ago
pThe worsening media economy has forced the New York Times Co (a
href="http://finance.paidcontent.org/paidcontent?Page=QUOTETicker=NYT" class="ticker"
title="NYT"NYSE: NYT/a). to reduce the dividend it pays to shareholders, ending a weeks of
speculation about wb/bhen it would do so.nbsp; Board of Directors today declared a quarterly
dividend of $.06 per share on the Company's Class A and Class B common stock, down from $.23 per
share in the third quarter of 2008. While some of the family members who were a
href="http://www.paidcontent.org/entry/419-earnings-call-nytco-exploring-dividend-cuts-could-affect-payout-to-fami"
title="previously getting"previously getting/a $25 million on the $.23 per share dividend will
likely complain, many analysts will feel that the cut didn't go far enough. The company had been
under increasing pressure to rein in costs. Alluding to a iNew York /imagazine profile of the
Sulzberger family last month, a
href="http://www.paidcontent.org/entry/419-nyt-so-far-the-vaccine-against-bancroft-itis-is-working-with-the-sulzbe"
title="we noted"we noted/a the dividend—which was raised 31 percent last
year—that a cut in the dividend could cause the kind of revolt that spurred the
members of the Bancroft family to sell their controlling interest in Dow Jones to News Corp (a
href="http://finance.paidcontent.org/paidcontent?Page=QUOTETicker=NWS" class="ticker"
title="NWS"NYSE: NWS/a). /p p -- b"Difficult, but necessary"/b: In a a
href="http://phx.corporate-ir.net/phoenix.zhtml?c=105317p=irol-pressArticleID=1228939highlight="
title="statement"statement/a, NYTCo chairman Arthur Sulzberger, Jr., called it a "a difficult but
necessary decision." He added: "We expect that this steep cut in the dividend, coupled with our
other actions, will help us decrease debt and improve the liquidity of the Company, a prudent
measure in this operating environment." /p p -- bOctober revs drop/b: As if the company needed more
evidence as to why they had to lower the dividend... Last month, revenues from continuing
operations fell 9.4 percent as ad revenues took another battering, dropping 16.2 percent. On the
plus side, circ dollars were up a slight 3.9 percent. Online was up 5.3 percent, a far cry from
October '07's 19 percent rise. a
href="http://phx.corporate-ir.net/phoenix.zhtml?c=105317p=irol-pressArticleID=1228942highlight="
title="Release"Release/a iMore after the jump/i /pp-- bInternet Businesses/b: Total web revs grew
4.3 percent, while money from internet ad sales rose 4.6 percent in October. The online businesses
include NYTimes.com, About.com, Boston.com and other websites. In total, online accounted for 12.1
percent of total revs in October, a slight uptick from the 10.5 percent last year. /p p --
Year-to-date, the company's total online revs rose 9.6 percent, while web-related ad dollars jumped
13.4 percent. In 2008 so far, the NYTCo's internet businesses comprised 11.9 percent of total
revenues for year-to-date October 2008 compared with 10.1 percent for the same period in '07. /p p
-- bNews Media Group's/b ad revs slid 17.2 percent due to continued weakness in print advertising.
Within that division, The New York Times Media Group's ad dollars fell 15.3 percent, dragged down
by increased softness classifeds, particularly real estate and jobs.nbsp; /p
pstrongRelated/strong/p ul class="related" lia
href="http://www.paidcontent.org/entry/419-nyt-so-far-the-vaccine-against-bancroft-itis-is-working-with-the-sulzbe"
title="NYT: So Far, The Vaccine Against Bancroft-itis Is Working With The Sulzberger Fifth Gen"NYT:
So Far, The Vaccine Against Bancroft-itis Is Working With The Sulzberger Fifth Gen/a/li /ul piOur
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