New York Times sees 2007 online revenue at $350 mln

NEW YORK, March 6 (Reuters) - The New York Times Co. (NYT.N) expects online revenue to grow 30 percent to about $350 million in 2007, its chief executive said on Tuesday.

That would equal 10.6 percent of the nearly $3.3 billion in revenue that analysts polled by Reuters Estimates expect the Times to report this year.

In 2006, digital revenue was $273.9 million, about 8 percent of revenue. Digital revenue includes the About.com information Web site, the NYTimes.com Web site and other online operations.

"Clearly 2006 was a great step in the right direction," Janet Robinson told analysts at a Bear Stearns conference in Palm Beach, Florida.

The leap comes as the Times invests more money in its online business. At the same time, it is cutting costs through plant closings, shutting foreign bureaus at the Boston Globe and outsourcing various functions at some of its other papers as print advertising weakens.

Many U.S. daily papers are dealing with falling circulation and soft advertising sales as more readers seek out free news and information online and as advertisers try to spread their messages through multiple media.

That has led some papers to trim expenses by reducing staff and cutting back on coverage even as they bring in more visitors online.

In 2007, the Times expects to achieve cost savings and productivity gains of $65 million to $75 million, excluding expenses, Chief Financial Officer James Follo said at the conference.

The Times also recently hired consulting firm Bain & Co. for "revenue enhancement and cost reduction efforts," Follo said.

A Times spokeswoman was not immediately available for comment.

Times shares fell 3 cents to $24.15 in morning trading on the New York Stock Exchange.

((Reporting by Robert MacMillan, editing by Dave Zimmerman; Reuters Messaging: robert.macmillan.reuters.com@reuters.net; 646-223-6012; e-mail: robert.macmillan@reuters.com.)) Keywords: NEWYORKTIMES DIGITAL/

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