• by Erik Sass , February 22, 2007

The New York Times Company got off to a slow start in 2007, posting a slight drop in sales compared to the same month last year. Overall ad revenues fell 2.1% to $182.6 million. The fall was due largely to continuing weakness at its New England operations, the company said, with that division's ad revenue tumbling 9.7%. Considered separately, ad revenues at The New York Times division were actually up slightly, rising 0.6%.

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.

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.