The New York Times has raised substantial circulation revenues from its online paywall, but these are unlikely to make up for continuing losses on the print advertising side, according to Citigroup analyst Leo Kulp, who cited the company’s precarious finances in a note to investors, when he downgraded The New York Times Co. stock from “buy” to “neutral.”
Regardless of the actual amount, however, the company will be hard-pressed to make up for losses suffered on the print side since the middle of the last decade. From 2006 to 2010, NYTCO’s total revenues declined 27.4% from $3.29 billion to $2.39 billion, due mostly to a steep decline in advertising revenue, from $2.15 billion to $1.3 billion -- a 39.5% drop in just five years.
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