The New York Times Company reported an increase in third quarter profits on Thursday. The company said it has attracted enough paying subscribers to its website to compensate for the decrease in total advertising revenue.
The Times also reported that circulation revenue grew and costs decreased. The company saw a decline of 8.8 percent in total advertising revenue and called it "a sign of the challenges the industry faces in a stagnant economy." Print advertising revenue declined 10.4 percent.
Despite the declines in advertising revenue, the Times Company was still able to pay off a charge related to a repayment of its loan from Carlos Slim Helú, the Mexican telecom billionaire who bought a large share in the company in 2008 and raised his investment to $250 million in 2009.
The Times Company also attributed some of its increased profits success to the recent sale of its stake in the Boston Red Sox. The New York Times sold their stake for $117 million and received a pre-tax gain for $64 million.
World Press Trends recently reported that newspaper circulation was down by 2 percent in 2010 but that the amount of users who turned away from print newspapers have been more than made up for by the increased amount of people who turned to digital sources. The New York Times showed steady growth in subscribers from the second quarter to the third quarter. The Times reported it "now has 324,000 paid subscribers to the various digital editions of the paper, including e-readers and its Web site, compared with 281,000 at the end of the second quarter."