New York Times suspends dividend
Thursday February 19, 2009
New York Times suspends quarterly dividend payment in effort to preserve cash
biz.yahoo.com
The New York Times Co. said Thursday its board has decided to suspend the newspaper publisher's quarterly dividend in a move to preserve cash as advertising spending continues to decline amid the recession.
The suspension of the payout comes after New York Times slashed its dividend to 6 cents from 23 cents in November.
"Today's decision provides the company with additional financial flexibility given the current economic environment and the uncertain business outlook," said Arthur Sulzberger, Jr., chairman, in a statement. "We expect the suspension of the dividend, coupled with our other actions, will help us decrease debt and improve the liquidity of the company, a difficult but prudent measure in this operating environment."
Last month, the Times company, which publishes the Times, The Boston Globe, the International Herald Tribune and 16 other daily newspapers, said its fourth-quarter earnings plunged 48 percent and online sales fell for the first time as the recession depressed spending by advertisers. The results still beat analyst estimates.
The Times also has said it is working with investment firm Goldman Sachs to explore a sale of its 17.8 percent stake in New England Sports Ventures, which owns the Boston Red Sox baseball team, Fenway Park, a portion of a cable sports network and other properties.
Like other newspaper companies, the Times has suffered from plunging ad revenue as the recession exacerbates weaknesses from the migration of readers to the Internet. The housing slump, decline in auto sales and mounting layoffs in many industries has done away with much help-wanted, real estate and automotive classified ads as well.
The Times has been trying to raise $225 million from its new, 52-story midtown Manhattan headquarters, either by selling the building and leasing it back or borrowing against it.
The company's shares closed down 20 cents at $3.51. |
