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READ / BROWSE / CLICK / LISTEN / POST / THE NEW YORK TIMES COMPANY TIMES YORK NEW THE DOWNLOAD / PLAY / DISCUSS / / 2007 ANNUAL2007 REPORT ... THE NEW YORK TIMES COMPANY 2007 annual report FEBRUARY/ The Times MARCH/ The Company increases Company and Monster its dividend 31% / About, Inc. Worldwide enter into acquires UCompareHealthCare.com a strategic recruitment / NYTimes.com launches crossword advertising alliance widget for Google home pages for the Company’s newspaper properties APRIL / The New York Times and MAY/ The Company sells its Broadcast Media Group / The Boston Globe each win a Pulitzer About, Inc. acquires ConsumerSearch.com, a leading Prize / The Company sells WQEW-AM, online aggregator and publisher of reviews of consumer a New York City radio station products / The Boston Globe introduces Fashion Boston / NYTimes.com launches new site dedicated to Small Business / Times Reader, a digital version of the JUNE/ The Times Company moves into newspaper, wins a “100 Best Products of 2007” award its new headquarters / Two members of from PC World the R&D team win Yahoo! BBC London Hack Day 2007, by creating a portable mobile application that lets users shift content between devices (www.shifd.com) SEPTEMBER/NYTimes. OCTOBER / The New NOVEMBER /Regional com introduces real York Times opens Media Group and Worcester estate property listing new national print site Telegram & Gazette join product for mobile users in Salt Lake City, Yahoo!’s online publishing / The Gainesville Sun Utah / NYTimes.com consortium / T: The New launches its continuous introduces new York Times Style Magazine news operation and section on Wellness launches Web site / redesigned Web site and Health / Santa T Magazine International debuts (www.gainesville.com) Rosa Press Democrat in the International Herald celebrates its Tribune / NYTimes.com has 150th anniversary 18.9 million unique visitors – the highest monthly amount recorded since the Company DECEMBER /About Group’s revenues surpass began tracking this statistic $100 million / The Boston Globe introduces using Nielsen Online in 2002 Lola, a women’s lifestyle magazine / Internet businesses account for 10% of the Company’s total revenues for 2007 ...TRUST 2007 MILESTONES p.2 To Our Shareholders / from what used to be separate print and digital operations together in one building. Aside from the very positive cultural Transformation takes time, determination and focus. In a change, the building itself has proven to be a valuable asset, difficult year for the media industry, The New York Times worth far more than we invested. We lease out fi ve fl oors, Company made signifi cant strides in our transition from a which generate signifi cant income, and TheTimesCenter in company focused primarily on print to one that is increasingly our new headquarters provides us with space for events that digital in focus and multiplatform in delivery. We are guided help strengthen our relationship with our readers and adver- by a multiyear strategy designed to meet the demands of a tisers and generates rental revenue. marketplace that has been reconfi gured technologically, eco- nomically and geographically. INTRODUCING NEW PRODUCTS IN PRINT AND ONLINE / There are four key elements to our strategy: – introducing new products both in print and online, We have powerful and trusted brands whose relevance and – building our research and development capability, high-quality content attract educated, affl uent and infl uential – rebalancing our portfolio of businesses and audiences highly valued by advertisers. This is true in print and – aggressively managing costs. it is true online. Because of the strength of our brands, we were able to extend them across new geographic areas, new In each of these areas we made substantial progress in 2007. platforms and into new products that contributed to our rev- Operating profit from continuing operations increased to enues and profi ts in 2007. $227 million from a loss of $521 million in 2006, when we had a non-cash charge of $814 million for the write-down of To infl uential, intelligent and inquisitive news and informa- intangible assets at our New England Media Group. Excluding tion seekers, The New York Times is the innovative and non-cash charges, an additional week in our 2006 fiscal forward-thinking media brand that delivers an unparalleled calendar and divestitures, our operating profi t before depre- experience across platforms. It does so by ciation and amortization rose modestly. staying true to its core values of providing In 2007 Andrea Elliot of The content of the highest quality and integrity. New York Times received Last year’s secular and cyclical challenges continue in 2008. a Pulitzer Prize for feature Advertisers demand more targeted audiences as they pursue The properties of the New England Media writing and Charlie Savage sophisticated cross-platform, market segmentation strategies Group – which include The Boston Globe, of The Boston Globe won and they seek measurable returns on their investments. They Boston.com and the Worcester Telegram one for national reporting. strive to understand how to best use media vehicles that are & Gazette – provide readers with high- increasingly interactive. Advertisers demand bold ideas of quality and comprehensive coverage and enable advertisers to their agency and publishing partners to combat the clutter in reach the biggest audience in Boston, the fi fth largest market the media landscape. While digital media have enhanced the in the country. ability to craft effective messages, they have also heightened Similarly, our 14 smaller regional newspapers and their competition and contributed to the clutter. Moreover, at the associated digital offerings, which make up our Regional end of last year and in early 2008, we have also seen the Media Group, provide their users with quality local news effects of a weakening economy. and information. While we believe that print will continue to be a viable medium Across our Company, the quality of our journalism at for many years to come, overall print advertising and circula- our newspapers was recognized with numerous awards, tion have been declining across the industry in recent years. including a Pulitzer Prize for both The Times and the Globe. Our job, therefore, is to grow our digital businesses quickly enough to outpace print declines. We seek to increase the Our trusted brands are truly a competitive advantage as we share of our revenues and profi ts coming from our digital move more aggressively into digital media. We have seen operations through organic growth and through acquisitions. this clearly at both The New York Times and The Boston At the same time, we are capitalizing on opportunities that we Globe. Three years ago we redesigned The Times’s Sunday see in the print arena while being very diligent at managing supplemental magazines and rebranded them “T: The New costs and allocating capital spending to projects where the York Times Style Magazine.” These new publications have investment is expected to provide a strong return. been hugely successful with both readers and advertisers, particularly with luxury brands. Ad paging grew 12% and Symbolic of our transition from print to digital was our revenues rose 9% in 2007. move last year from the place The New York Times had called home since 1913 into new headquarters. Our old Since the inception of “T,” we expanded its franchise in print, building had been constructed as a printing facility. Our new online and globally. Last year we introduced “T” Magazine one includes the technology we need as a 21st century online and the International Herald Tribune launched its own media organization. This magnifi cent and environmentally- international “T” Style Magazine in Europe. sensitive addition to the New York City skyline is allowing us to work in a more integrated fashion. It has brought people 2007 annual report p.1 Like The Times, The Boston Globe has also introduced new Revenue growth for our online properties has been higher than print products in areas where it believes there are opportuni- our peers in the newspaper industry. This is mainly because ties to garner advertising, especially in the luxury categories. the high-quality content of NYTimes.com attracts a diverse “Fashion Boston” is a new monthly publication directed toward base of national advertisers and the About Group generates women who have a strong interest in high fashion. “Design most of its revenues from fast growing display and cost-per- New England,” The Boston Globe’s magazine targeting high- click advertising. This gives us a more diversifi ed revenue base net worth households, architects and designers, fi rst came out than many of our newspaper competitors, which rely heavily in late 2006 and appeared bi-monthly in 2007. In November, on upselling classifi ed print advertising to the Web. the Globe introduced another new monthly magazine called Our goal for NYTimes.com is to build a fully interactive news “Lola” for Boston women in their 20’s, 30’s and 40’s. and information platform, achieving sustainable leadership Across all of our newspapers, we are offering innovative new positions in our most profi table content areas, which we call the ad formats. Last fall The Times introduced the spadia, a wrap- verticals. In 2007 this included: around ad that NBC used to debut its fall line-up. – Investing in key verticals to grow those parts of the site that new have the highest advertiser demand. We concentrated on These are examples of what our talented colleagues are doing york developing NYTimes.com’s verticals in health, business and at the Times Company to drive better performance. You will times technology while continuing to enhance the entertainment see more experimentation and innovation in the coming year. co. and travel sections. OPTIMIZING CIRCULATION / – Adding more features and functions to enrich our users’ experiences, including comprehensive reference articles, New circulation initiatives are also an integral part of our effort videos, podcasts, slide shows, Web-only columns and inter- to reinforce our print franchise.
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