As in previous months, online ad revenue was the company's biggest growth area in percentage terms--jumping 26.2% due to strong demand for display and classified ads. About.com's revenue rose 22.5% to $8 million.
Although this growth has been consistent, the rate of increase in digital revenues has varied over time: In the fourth quarter of 2006, digital revenues were up 35% compared to the same quarter in 2005. Third quarter was up 24%, second quarter 25% and first quarter 23%.
On the other hand, the New England Media Group has consistently posted the biggest percent losses of any New York Times Co. division over the last several years.
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On a year-over-year basis, ad revenue in the first quarter of 2006 declined 7% compared to the same period of 2005. Second quarter dipped 10%, and third quarter saw a 12% drop. The New England properties cost the company $814 million in the form of "the write-down of intangible assets at the New England media group" in the fourth quarter, according to New York Times CEO Janet Robinson.
The write-down meant a 60% decrease in the value of The Boston Globe and Worcester Telegram & Gazette, which the company bought for $1.4 billion in the 1990s.