Transitioning to an online business model for a newspaper company is made all the harder if your print and online advertising revenues are falling. That's the scenario for the New York Times Company.

Its third quarter financial report showed a $35.6m loss - smaller than expected as cost cutting measures helped slow losses. The company recently said that it will cut 100 newsroom jobs.

Ad revenue at the company's News Media Group, which includes all of its newspapers, fell 29.6 percent compared to the period a year earlier -- essentially unchanged from the 30 percent drop in the first half of the year.

. . . Internet revenue declined 7.2 percent, to $78.9 million. That includes a 7.2 percent increase at the About Group, which includes About.com, and an 18.5 percent decline in digital advertising revenue at the News Media Group.

For the first time, the company's New York Times Media Group (NYTimes and International Herald) revenues from readers exceeded revenues from advertisers: "circulation revenue reached $175.2 million in the third quarter, while ad revenue dropped to $164.5 million."

The company said that there was some sign of an improving economy and that fourth quarter losses should be lower than in the most recent quarter.

Times Co. Reports Loss but Beats Estimates - NYTimes.com

The New York Times Company Reports 2009 Third-Quarter Results