Sunday 26 October 2008

Is the mood 'frantic' inside the NYT?

Is the mood 'frantic' inside the NYT?

The figures would suggest it might well be, but there is nothing in this story from the Murdoch-owned New York Post that indicates or even proves it is.

This story, posted last Thursday, had received no ratings or comments on the NYPost website, which would suggest one thing at least and that's that the NYPost's readership aren't frantically interested in the story.




FRANTIC TIMES EYES DIVIDEND
By HOLLY M. SANDERS
Last updated: 11:03 amOctober 24, 2008 Posted: 4:29 amOctober 24, 2008
The New York Times Co. is considering cutting the rich dividend it pays to shareholders, including the controlling Sulzberger family, after its debt was cut to junk.
The company is under intense pressure to cut the $132 million annual payout while still under the sway of a family that reaps $25 million a year in dividends.
Some analysts and investors have said cutting the dividend could divide the family and make some members more amenable to a sale.
"Our board of directors plans to review our dividend policy before the end of this year to determine what is most prudent in light of the overall market conditions," CEO Janet Robinson said in a statement.
The company, which owns more than a dozen papers, said overall revenue fell 9 percent, while ad revenue skidded 14 percent.
Standard & Poor's cut its debt rating on the company to junk after the results came out, saying it expects the economic downturn to exacerbate advertising declines for at least another year.
Moody's Investors Service also said it may cut the Times Co.'s debt to below investment grade.
The S&P downgrade came after the close of regular markets, sending the stock down nearly 4 percent in late trading. The shares closed at $10.70 in regular trading.
The Times said it's looking at ways to reduce more than $1 billion in debt, although execs acknowledged it would be tough to sell assets in this economy.
The Times Co. has about $430 million in debt coming due over the next couple of years, while a $400 million credit line is set to expire in May 2009.
The company, which had $46 million in cash at the end of the quarter, is holding talks with lenders about restructuring its debt and said it expects to meet its obligations.
In another sign of the paper's woes, the company may write down the value of its New England newspapers, including the Boston Globe, by as much as $150 million.
The Times Co. has been cutting costs, including jobs at its flagship paper, and said it is looking to trim elsewhere.
Profit plunged 51 percent to $6.5 million, or 5 cents a share, on revenue of $687 million.
Online advertising grew 10 percent in the quarter, although it wasn't enough to offset a 16 percent drop in newspaper ad sales.
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