• by Gavin O'Malley  @mp_gavin, July 23, 2009

Due in large part to fewer total ad buys, total online ad revenues at The New York Times Co. declined by 15.5% in the second quarter, the publisher reported Thursday. "Advertising revenues decreased across all major categories although the rate of decline lessened throughout the quarter," said Times Co. CEO Janet Robinson.

Online revenues, meanwhile, accounted for 21% of the Times Co.'s total revenue compared to 18% a year earlier.

"As we continue our transition from a company focused primarily on print to one that is increasingly digital in focus and multiplatform in delivery, online advertising revenues are a more important part of our mix," Robinson said.

Despite several failed previous efforts, The Times Co. also said it is considering charging readers for access to its online content in the future.

Robinson said the company is presently conducting research to determine how many of its readers would be willing to pay for online content and exactly how much they would be willing to pay. The tests, she said on Thursday, are based on a metered model and a Times membership model, while the company is expected to provide more specifics later this year.

Overall, the company reported a second-quarter profit of $39.1 million -- or 27 cents a share -- compared with a prior-year profit of $21.1 million, or 15 cents a share. Along with a tax benefit, cutting operating costs by 20% in the quarter led to the profit, along with a projected $450 million in cost savings this year.

"While we continued to experience a very difficult economic climate in the quarter as well as secular changes affecting the entire media industry, we made significant progress in decreasing our cost base and reducing and restructuring our debt," said Robinson.

Excluding items, per-share earnings fell to 8 cents from 26 cents, but the number still surpassed the average analyst forecast on Thomson Reuters, which was for a loss of 4 cents a share.

Total revenue decreased 21% to $584.5 million, and even managed to miss expectations of $603 million.

Total ad revenue declined by 30.2%, while circulation revenue rose 1.5% due to recent price increases. Ad revenue at its news media group, which includes its newspapers, was down 31.9%.

Robinson, however, said the company's declines in monthly ad revenue improved throughout the quarter, with sales down 35% in April, 30% in May and 29% in June.

The company on Thursday also lowered its projection for 2009 capital spending by $10 million to $70 million and cut its interest-expense estimate by $5 million to $85 million.

Looking ahead, Robinson said: "Based on what we have seen so far in July, we expect the advertising environment to continue to be challenging ... We believe the rate of decline will moderate slightly in the third quarter from what we experienced in the second quarter."