The New York Times Company (NYT), the leading media company, recently announced that it has completed the sale of its UCompareHealthCare.com, a unit of About Group, to MDxMedical Inc., the holding company of Vitals.com. However, the financial terms of the deal were not disclosed.
Taken together patients visit the UCompare and Vitals.com more than 100 million times annually.
The move follows the company’s strategic initiative to enhance its efficiency in the About Group segment, which was lagging behind in terms of revenue generation.
About Group segment’s revenue fell 3.0% to $35.2 million during fourth-quarter 2010, reflecting a decline in display advertising as well as lower cost-per-click advertising. Adjusted operating profit also dipped 7.8% to $19.1 million, attributable to a fall in advertising revenue and increase in costs.
Acquired in March 2007 by the New York Times, UCompareHealthCare.com offers vibrant online synergetic tools to its customers to evaluate the worth of healthcare services and helps them in finding healthcare institutions and service providers.
Lyndhurst, United States based MDxMedical Inc. provides online information, which help patients to find healthcare providers that are right for them. The company’s site allows patients to search doctor’s expertise and practice, patients’ feedbacks, hospital information, etc. The site also facilitates patients to book appointments online.
Recently, New York Times posted fourth-quarter 2010 earnings of 46 cents per share, which beats the Zacks Consensus Estimate of 34 cents and inched up 4.5% from 44 cents earned in the prior-year quarter. Including one-time items, the company posted quarterly earnings of 44 cents, down 8.3% from 48 cents posted in the year-ago quarter.
The New York Times registered a drop in top line during the quarter. After declining 2.7% in the third-quarter, total revenue slipped 2.9% to $661.7 million from the prior-year quarter, and also fell short of the Zacks Consensus Estimate of $664 million.
The ongoing slump in the advertising market continues to weigh upon The New York Times Company, the publisher of The New York Times, the International Herald Tribune, The Boston Globe and 15 other daily newspapers. Total advertising revenue slid by 3.1% to $385.8 million, as against a marginal fall of 1% in third-quarter 2010.
New York Times, which competes with News Corporation (NWS) and The Washington Post Company (WPO), currently has a Zacks #3 Rank, implying a short-term ‘Hold’ rating on the stock. Besides, the company retains a long-term Neutral recommendation.
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