The New York Times Co.'s decline in ad revenue has been eased this quarter and Web ad sales are up again, according to the publisher's statement released Tuesday, The Associated Press reported.
The projection brought in hopes that the company will be back on the financial track in 2010, and lifted its shares up slightly.
However, there is still a lot to be done for the Times Co. to find the balance it will need. The loss of printed ad revenue can not compensate the earning from Internet advertising, according to the AP article posted on Google News.
In the final quarter of the year, the company is expecting 25 percent down in print advertising, or about US$97 million decline, year-over-year, to $290 million. On the other hand, the publisher is expected to gain $90 million, or 10 percent growth, from online ad sales in the fourth quarter.
In order to cut cost and boost profits, the Times Co. this year has reduced its expenses by about $475 million, or about 17 percent of its' operating costs last year. It eliminated about 20 percent staff since last year and expects some more 100 positions cut by the end of this year.
In addition, the company has been earning more revenue by raising cover prices. Circulation revenue gained seven percent in the previous quarter and is projected to rise another two percent, or about $5 million, in the fourth quarter.