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NEW YORK - The New York Times Co today reported a 6.7 per cent rise in profit because of higher national advertising sales and a price increase for its flagship newspaper, sending its shares up as much as 8 per cent.
The better-than-expected results were in sharp contrast to downbeat earnings results from most US newspaper publishers.
Third-quarter net income rose to US$13.44 million ($18.30 million) from US$12.6 million in the third quarter a year ago. Earnings per share were flat at 9 cents.
"The New York Times blew the top off," said Benchmark Co analyst Ed Atorino. " It was just a very impressive performance by The New York Times Company in the midst of a disastrous industry performance. I have a hold on it, but I have to take a hard look at that stock today."
Times shares, which have fallen by nearly 20 per cent since last year, were up US$1.14 at US$19.55 after hitting US$19.92 earlier on the New York Stock Exchange.
Revenue at the Times, which also publishes the Boston Globe and several smaller daily newspapers throughout the United States, rose 2 per cent to US$754.4 million. Analysts, on average, had forecast revenue of US$734 million.
The New York Times Co cautioned that it is does not know how the fourth quarter will shape up. The company reported strong performance in September, but added that October has not been as robust.
September advertising revenue rose 5.5 per cent, while the news media group's ad sales jumped 18.9 per cent on strong national advertising sales growth.
The company's online division reported that revenue rose 26.5 per cent to US$79.7 million.
Internet operations accounted for 10.6 per cent of the company's revenue, up from 8.5 per cent a year ago.
That includes the About.com online search and question-and-answer website and various news websites.
- REUTERS
