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The New York Times Company

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Silicon Alley Insider

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What would happen to NYT business if all readers of NYT print publications switched to online tomorrow?

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REVENUEQ207Adjusted

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Offline$707,943$0

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Online$81,000$284,716

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Total$788,943$284,716

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Adjustments:

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Offline to zero

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Online readers increase 7.5mm to 10mm

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Online revenue up by 33%

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BONUS: Online up by 25% of offline

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PRODUCTION COSTSQ207Adjusted

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Raw Materials$63,139$0

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Wages and Salaries$158,883$119,162

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Other$103,900$0

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Total$325,922$119,162

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Adjustments:

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Cut all raw materials

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Assume all "other" is print-related and cut

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Assume 25% of "wages" is print and cut

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OTHER COSTSQ207Adjusted

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Selling, General, and Admin Costs$344,481$229,654

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Adjustments:

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Reduce SGA by 1/3rd for lower revenue

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PROFITABILITYQ207Adjusted

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EBITDA$118,540-$64,100

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CONCLUSIONS

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After mammoth restructuring:

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--Revenue down by about 60%

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--40%-50% of employees terminated

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--Company still hemoraging money.

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Published By:

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Silicon Alley Insider